tag:blogger.com,1999:blog-19986539628506292022019-09-13T07:28:21.965-07:00FOREX PRO : Trade Like A Pro !Trade Like A Pro !Kishor Navalehttp://www.blogger.com/profile/14578748194004535051noreply@blogger.comBlogger44125tag:blogger.com,1999:blog-1998653962850629202.post-13539723698702182652019-04-11T09:15:00.000-07:002019-09-08T10:21:52.608-07:00Shanghai Stock Exchange<div dir="ltr" style="text-align: left;" trbidi="on"><br /><b><span style="font-size: large;">Originally opened in the 1860s, the Shanghai Stock Exchange (SSE) was shut down by the Communist Party in 1949. In 1990, the exchange opened again, ushering in a new age for the Chinese economy, one heralded by wild swings, with both market run-ups and crashes.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Unlike other stock exchanges around the world, the SSE operates as a nonprofit organization. It’s administered by the CSRC (China Securities Regulatory Commission), and is prone to excessive government oversight. Most of the major companies listed in this exchange used to be state-run companies, including insurance companies and banks.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-dHeyppEt3WI/XK9oAdBY7fI/AAAAAAAAa7Q/YSU4cXGr9EM8d4sfSlkLpMjF_WcrRbmWgCLcBGAs/s1600/shanghai-stock-exchange-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1200" data-original-width="1600" height="480" src="https://1.bp.blogspot.com/-dHeyppEt3WI/XK9oAdBY7fI/AAAAAAAAa7Q/YSU4cXGr9EM8d4sfSlkLpMjF_WcrRbmWgCLcBGAs/s640/shanghai-stock-exchange-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In order to qualify for listing on the SSE, a company has to be in business and earn profits for at least three years.</span></b><br /><b><span style="font-size: large;">The SSE, which is the largest stock exchange operating in China, lists two different types of shares: A shares and B shares. A shares are quoted only in Chinese currency, the yuan.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">They represent stock in companies based on the Chinese mainland. Until fairly recently, only citizens of mainland China could buy A shares. However, approved foreign investors, designated as QFII (qualified foreign institutional investors) are now allowed to purchase them through a special highly regulated system. B shares are open to both foreign and domestic investors, and these shares are quoted in other currencies, like U.S. dollars. Every stock on the SSE trades in both A and B shares.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The main index tracking the Shanghai Stock Exchange is the SSE Composite. This measure is expected to mirror the overall Chinese economy as more state-run companies go public. In 2015, the SSE cycled through majestic highs and painful lows, displaying extreme volatility despite focused government intervention. One reason for those very wide swings was the extremely high proportion of margin trading (when investors borrow against their holdings to buy shares on credit), which involved trillions of yuan (Chinese currency).&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Another reason was the heavy hand of the Chinese government, which exercised its power even as it attempted to offer freer access to foreign institutional investors.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Companies listed on the Shanghai Stock Exchange include Air China, Bank of China, PetroChina, and Tsingtao Brewery. Though some inroads have been made that allow certain foreign investors to buy Chinese stocks, individual foreign investors can more easily invest in these shares using the Stock Exchange of Hong Kong.</span></b><br /><div><br /></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-17991487386014340052018-12-29T08:21:00.000-08:002019-09-08T10:21:52.620-07:00Forex Study Book For Successful Foreign Exchange Dealing pdf<div dir="ltr" style="text-align: left;" trbidi="on"><br /><div dir="ltr" style="text-align: left;" trbidi="on"><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-YJvh0A1wjSM/WfTnJhegysI/AAAAAAAAXqY/-2a9ffbIk0IWdQb5lVyfwVyZ-j7JZaUZwCLcBGAs/s1600/bfx-education-package-1-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="361" data-original-width="487" height="474" src="https://4.bp.blogspot.com/-YJvh0A1wjSM/WfTnJhegysI/AAAAAAAAXqY/-2a9ffbIk0IWdQb5lVyfwVyZ-j7JZaUZwCLcBGAs/s640/bfx-education-package-1-min.jpg" width="640" /></a></div><br /><center></center><b><br /></b><b><span style="background-color: yellow; color: blue; font-size: large;"><a href="https://drive.google.com/file/d/1FF8Y68qzTaZwB2nCDlpW1yui_qBBmbRv/view?usp=sharing">IF NOT DISPLAYED ; PLEASE VIEW BY CLICKING HERE !</a></span></b><br /><br /><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><div class="separator" style="clear: both; text-align: center;"><a href="https://drive.google.com/file/d/1FF8Y68qzTaZwB2nCDlpW1yui_qBBmbRv/view?usp=sharing" style="margin-left: 1em; margin-right: 1em;"><img alt="Forex Study Book For Successful Foreign Exchange Dealing" height="142" src="https://3.bp.blogspot.com/-zGxtOnJOz8o/XCeLuy0-J0I/AAAAAAAAavM/ag2UL8HSxCkzpkTRejDHYEORNA4oV7nMwCLcBGAs/s1600/GettyImages-839046092-5abc15828e1b6e003772ae5a.jpg" title="Forex Study Book For Successful Foreign Exchange Dealing" width="320" /></a></div><br /><div style="text-align: center;"><br /></div></div></div></div></div></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=blogspot/NDfFM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY <span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="blogspot/NDfFM" /><input name="loc" type="hidden" value="en_US" /><input p="" type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span> <span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-81479052044882444842018-12-29T07:56:00.000-08:002019-09-08T10:50:31.744-07:00Forex Trading With Candlestick And Pattern pdf<div dir="ltr" style="text-align: left;" trbidi="on"><br /><div dir="ltr" style="text-align: left;" trbidi="on"><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-YJvh0A1wjSM/WfTnJhegysI/AAAAAAAAXqY/-2a9ffbIk0IWdQb5lVyfwVyZ-j7JZaUZwCLcBGAs/s1600/bfx-education-package-1-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="361" data-original-width="487" height="474" src="https://4.bp.blogspot.com/-YJvh0A1wjSM/WfTnJhegysI/AAAAAAAAXqY/-2a9ffbIk0IWdQb5lVyfwVyZ-j7JZaUZwCLcBGAs/s640/bfx-education-package-1-min.jpg" width="640" /></a></div><br /><center></center><b><br /></b><b><span style="background-color: yellow; color: blue; font-size: large;"><a href="https://drive.google.com/file/d/1RY2GXEoLQ35cPbu0WZKTqQc6eJNqZ75v/view?usp=sharing">IF NOT DISPLAYED ; PLEASE VIEW BY CLICKING HERE !</a></span></b><br /><br /><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><div class="separator" style="clear: both; text-align: center;"><a href="https://drive.google.com/file/d/1RY2GXEoLQ35cPbu0WZKTqQc6eJNqZ75v/view?usp=sharing" style="margin-left: 1em; margin-right: 1em;"><img alt="Forex Trading With Candlestick And Pattern pdf" height="142" src="https://3.bp.blogspot.com/-zGxtOnJOz8o/XCeLuy0-J0I/AAAAAAAAavM/ag2UL8HSxCkzpkTRejDHYEORNA4oV7nMwCLcBGAs/s1600/GettyImages-839046092-5abc15828e1b6e003772ae5a.jpg" title="Forex Trading With Candlestick And Pattern pdf" width="320" /></a></div><br /><div style="text-align: center;"><br /></div></div></div></div></div></div><br /><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=blogspot/NDfFM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY <span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="blogspot/NDfFM" /><input name="loc" type="hidden" value="en_US" /><input p="" type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span> <span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-16792159242558260792018-12-12T10:48:00.000-08:002019-09-08T10:50:31.741-07:00How to make 200 pips a Month ?<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">READ THIS BEFORE LOOKING AT PRICE CHARTS... Kindly read <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/p/risks-associated-with-forex-trading.html">RISK DISCLAIMER</a></span> before proceeding further for real live chart basis Forex trading. Charts given below are provided with Daily readings.</span></b><br /><br /><span style="color: red;"><span style="font-size: large;"><b>MONTHLY</b></span><b><span style="font-size: large;">&nbsp;BASIS FORECAST :</span></b></span><br /><b><span style="font-size: large;"><br /></span></b><span style="font-size: large;"><b>Readings are getting generated from charts short term and long term trends analysis with minimum most secure tp pip prices and 99% accurate profit with respect to live market data. <span style="color: blue;">I am applying only three trades on Monthly&nbsp;basis&nbsp;</span></b></span><span style="color: blue; font-size: large;"><b>with 100+ Pips TP of Each.</b></span><br /><b><span style="font-size: large;"><br /></span></b><b style="font-size: x-large;">Monthly</b><b><span style="font-size: large;">&nbsp;trades are mostly getting generated before End of Month. Trader can set limit orders to that price with set of tp and sl. Expected profit is subjected to market risk. I consider secure minimum profit on leverage basis.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-5Hn57dLDHgQ/XHLT6gJzgII/AAAAAAAAay8/AKKzbC4sU_kl2u_MawnHwFHYss6i43uUwCLcBGAs/s640/0.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="476" height="640" src="https://3.bp.blogspot.com/-5Hn57dLDHgQ/XHLT6gJzgII/AAAAAAAAay8/AKKzbC4sU_kl2u_MawnHwFHYss6i43uUwCLcBGAs/s640/0.JPG" width="476" /></a></div><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="font-size: large;">Here are some leverage calculations before you proceed for trading..</span></b></blockquote><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Consider 1:100 leverage of you account. For market makeup accounts ; broker do provide 1: 2000 also. Do not engage with fraud. U need free leverage space for price movement. hit the trade to price provided below safely.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">for 1:100 ratio... If deposit is&nbsp;</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;">$10000 then take a single lot of 1.0</span></b></li><li><b><span style="font-size: large;">$1000 then take a single lot of 0.1</span></b></li><li><b><span style="font-size: large;">$100 then take a single lot of 0.01</span></b></li></ul><br /><b><span style="font-size: large;">And So on..</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">I recommend <span style="background-color: yellow; color: blue;">100 pip tp</span>. As the same select maximum 3 accurate trades with same lot and same tp. Set limit order in advanced.&nbsp;</span></b><b><span style="font-size: large;">As I explained above. hit the trade to price provided below safely.</span></b><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=blogspot/NDfFM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid rgb(204, 204, 204); padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input p="" type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whats</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-59019088658405521382018-09-11T21:56:00.000-07:002019-09-08T10:21:52.668-07:00Ultimate Guide to Cryptocurrency trading : Get smart with Bitcoin, Ethereum and Ripple now.<div dir="ltr" style="text-align: left;" trbidi="on"><br /><b><span style="font-size: large;">We cannot conclude our analysis of fundamentalforces and sentiment trading without a reference to cryptocurrencies(Bitcoin, Ethereum, Litecoin, and so on).</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Bubbles are not just about the madness of crowds—nor are they simply manifestations of excess liquidity and leverage. But both of these factors are present in the extraordinary rise of bitcoin over recent months. Every spectacular bubble involves a premonition of the future. The trouble is that they turn out to be deeply flawed premonitions. In this respect, bitcoin has much in common with great historic speculative manias.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="font-size: medium;"><span style="font-size: x-large;"><b><span style="background-color: yellow; color: red;">What are cryptocurrencies?&nbsp;</span></b></span><b style="font-size: x-large;"><span style="font-size: large;"><br /></span></b></span><br /><span style="font-size: medium;"><b style="font-size: x-large;"><span style="font-size: large;"><br /></span></b></span><span style="font-size: medium;"><b style="font-size: x-large;"><span style="font-size: large;">The answer is not that straightforward. Are they commodities? Are they money? The best way to understand them is that they are digitized assets, with blockchain algorithms that eliminate the need for a central counterparty to make an exchange. From a regulatory point of view, different countries have different ways of defining them.</span></b><br /><b style="font-size: x-large;"><span style="font-size: large;"><br /></span></b><b style="font-size: x-large;"><span style="font-size: large;">Platforms are also emerging that allow trading of cryptocurrencies. (</span></b><b style="font-size: x-large;"><span style="font-size: large;"></span></b><b style="font-size: x-large;"><span style="font-size: large;"></span></b></span><span style="font-size: large;"><b><span style="font-size: large;"><a href="http://www.binance.com/">www.​binance.​com</a>)</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Going beyond the esoteric and regulatory arguments about the nature of cryptocurrencies, the focus here is on how to trade them. The best approach is using sentiment analysis. The best way to understand them, is that they are a manifestation of crowd behavior. It makes a lot of sense, as buyers of cryptos are buying because others are buying, and sellers are selling because others are selling. We are witnessing a virtual swarm movement.</span></b></span><br /><b><span style="font-size: large;"></span></b><br /><b><span style="font-size: large;">The challenge to the trader is when to fade or follow the crowd. This is not an asy challenge as crowd mania makes traditional technical analysis unable to reliably analyze the patterns. But sentiment analytics using price break charts acts as a filter and can provide insight into when to enter or exit crypto currencies. It is precisely because the crypto underlying markets are sentiment based, that our price break visualizations can be an effective guide on how to trade them, for those who want to take on more than the usual risk. Let us explore this in detail.</span></b><br /><br /><b><span style="font-size: large;"><br /></span></b> <b><span style="background-color: yellow; color: blue; font-size: x-large;">Steps in Trading Crypto</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Assuming that one has already obtained access to cryptocurrencies through a wallet, the first challenge is that of selection. Just which of the hundreds of Cryptocurrencies should one trade? There were, on April 11, 2018, 1566 cryptocurrencies listed at www.​coinmarketcap.​com. How can a trader make sense of this large domain and select trading opportunities?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Selecting the Crypto to TradeThere are uncountable approaches to trading cryptos. Some traders see them as similar to penny stocks and look for a very small priced crypto, such as below $1 and look to catch a large jump. It is important to keep in mind that the price at these low levels may actually reflect a lack of value, or perhaps ignorance about the potential.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Another approach is to select those cryptos that have achieved a reasonable level of capitalization such hundreds of millions of dollars. Capitalization offers at least a modicum of rationality as it demonstrates that there is a crowd forming around that crypto. But once a crypto is selected a key filter is diagnosing the pattern. Is it demonstrating a buy or a sell opportunity?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us look at the top ten crypto currencies and compare their patterns using three-line break analysis.</span></b><br /><br /><b><span style="background-color: yellow; color: red; font-size: x-large;">Bitcoin&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">the most commonly known cryptocurrency. Its market cap reached $117,633,712,941 with 16,971,525 coins produced. However, it has a maximum supply of 21,000,000.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">While hindsight is 20/20 vision, insight is not. Insight into bitcoin (as well as other cryptos) can be used to identify in advance locations for entry that are optimal and exits that are advisable from a risk point of view. This can be achieved by converting the price action into sentiment visuals.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-O_p9H4Rw5As/W5iXWEieYrI/AAAAAAAAZ3I/EYnfkFZoIOMiELzY2XZqLcRanIHv4N8EACLcBGAs/s1600/untitled-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1201" data-original-width="675" height="640" src="https://2.bp.blogspot.com/-O_p9H4Rw5As/W5iXWEieYrI/AAAAAAAAZ3I/EYnfkFZoIOMiELzY2XZqLcRanIHv4N8EACLcBGAs/s640/untitled-min.png" width="358" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Bitcoin day chart</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us go through the process.In Chart&nbsp; we see the historical rise and fall of bitcoin. It shows a bitcoin day pattern and when viewed in terms of volatility, we see it has had ranges of 30% in a day! It is not for the timid&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-HUsVIpNhkZg/W5iXowKzJNI/AAAAAAAAZ3Q/Usr9i-vYpr87vlbljkLXMEh6PPbwbMMkQCLcBGAs/s1600/unted-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1226" data-original-width="635" height="640" src="https://4.bp.blogspot.com/-HUsVIpNhkZg/W5iXowKzJNI/AAAAAAAAZ3Q/Usr9i-vYpr87vlbljkLXMEh6PPbwbMMkQCLcBGAs/s640/unted-min.png" width="330" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Bitcoin volatility</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: x-large;">Candlestick and Bitcoin</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let’s zoom in on bitcoin from a three-line break perspective&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The immediate ability to see that there is a persistence of sentiment is of great interest. Bearish new low day closes of three or more days in a row of new low day closes can be seen. Also of great interest are the reversal patterns. When bitcoin reversed back into being bullish, there is no long sequence of white bullish new high closes. The reversals are swing failures. Using this analysis, we can formulate a strategy for trading bitcoin:</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">1.detect major sentiment direction;&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">2.enter the market only after a reversal color has appeared and has been followed by another reversal back into the main direction. We can see in Chart&nbsp; some of these key reversal areas.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Finally, let us evaluate the price patterns from a line break perspective.</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-Pb4u3tYcUfo/W5iYEdzLz6I/AAAAAAAAZ3Y/6MQI0qfn5DULS5kjxXh7dBp5c06_nrGKACLcBGAs/s1600/und-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1257" data-original-width="636" height="640" src="https://4.bp.blogspot.com/-Pb4u3tYcUfo/W5iYEdzLz6I/AAAAAAAAZ3Y/6MQI0qfn5DULS5kjxXh7dBp5c06_nrGKACLcBGAs/s640/und-min.png" width="322" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Bitcoin day three-line break</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">We can see clearly whether the sentiment is bullish or bearish and, importantly whether it is persisting. We can see where it is strong enough to reverse and change color.</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/-Rtcu1bjLafM/W5iYlIQ7loI/AAAAAAAAZ3g/KK6cdvxnMLMxgah_G8qvPflXuL-l-FrPgCLcBGAs/s1600/ued-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1262" data-original-width="635" height="640" src="https://3.bp.blogspot.com/-Rtcu1bjLafM/W5iYlIQ7loI/AAAAAAAAZ3g/KK6cdvxnMLMxgah_G8qvPflXuL-l-FrPgCLcBGAs/s640/ued-min.png" width="322" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Bitcoin key reversal areas shown with three-line break</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This strategy rides the sentiment wave when it is optimal; when the price pulls back and then recovers to take out the previous three-line high close! So we only enter on these conditions. We take profit when we achieve 2× and 3× the risk. This allows for large profits, and gets us out of the way. From a trading mind-set, this rule tells the trader to jump on a crypto only when it has demonstrated the ability to recover from a reversal being expressed as a 3 line break chart. This can be a Day 3 line break or lower time frames! Always trade with the prevailing direction.</span></b><br /><br /><b><span style="background-color: yellow; color: red; font-size: x-large;">Ethereum</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Ethereum is a contending cryptocurrency that can also be traded. As of April 2018 it had a market cap of $41,394,737,549.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us look at the price pattern from a three-line break perspective. See <a href="https://www.ethereum.org/%E2%80%8B">https://​www.​ethereum.​org/​</a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The three-line break chart of Ethereum four-hour pattern shows that the sentiment is generally bullish</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-Y6SGeLZ92Qw/W5iY7QoMTCI/AAAAAAAAZ3s/ICoI-DdnroYmInODla1ZSbIjpal1rRFHgCLcBGAs/s1600/itled-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1263" data-original-width="635" height="640" src="https://1.bp.blogspot.com/-Y6SGeLZ92Qw/W5iY7QoMTCI/AAAAAAAAZ3s/ICoI-DdnroYmInODla1ZSbIjpal1rRFHgCLcBGAs/s640/itled-min.png" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Ethereum four-hour three-line break</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Bearish swings have failed to be sustained. A strategy for trading Ethereum based on the pattern exhibited is to buy it right after the three-line reverses back into a bullish new high close. The trader would apply our concept of a lower time frame aligned with a higher time frame. Looking at the one-hour, three-line pattern, we can see that it is exhibiting a sequence of new high closes</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-bLkii7rRCtg/W5iZcIr0JWI/AAAAAAAAZ30/Sj8P0tmVq0gsr3vm5DlvyrOKmi8SuYq5ACLcBGAs/s1600/untitd-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1262" data-original-width="633" height="640" src="https://4.bp.blogspot.com/-bLkii7rRCtg/W5iZcIr0JWI/AAAAAAAAZ30/Sj8P0tmVq0gsr3vm5DlvyrOKmi8SuYq5ACLcBGAs/s640/untitd-min.png" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Ethereum one-hour three-line</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The one-hour, three-line entry point would be after a swing failure down, and the black line appears, which is followed by a reversal white line. The trader could go and buy at the market at the close of the one-hour three-line break</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/-DE3NPUg82Uw/W5iZ34cOIzI/AAAAAAAAZ4A/-1zl4RCoz8guEGmy8vdHassvqUMqJ9RJgCLcBGAs/s1600/untid-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1268" data-original-width="633" height="640" src="https://3.bp.blogspot.com/-DE3NPUg82Uw/W5iZ34cOIzI/AAAAAAAAZ4A/-1zl4RCoz8guEGmy8vdHassvqUMqJ9RJgCLcBGAs/s640/untid-min.png" width="318" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Ethereum one-hour three-line buy signal</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: x-large;">Ripple</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Ripple is a popular cryptocurrency with a very low price, but still with a high market cap of $19,872,917,668. This makes it very interesting. The price pattern shows that it, like bitcoin, has large swings.</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-1EwcqnEwQ8I/W5iaHG-x4II/AAAAAAAAZ4E/8jgW8EEJXdIVHAF3KFg8K_ultSpORkuOgCLcBGAs/s1600/ud-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1262" data-original-width="631" height="640" src="https://2.bp.blogspot.com/-1EwcqnEwQ8I/W5iaHG-x4II/AAAAAAAAZ4E/8jgW8EEJXdIVHAF3KFg8K_ultSpORkuOgCLcBGAs/s640/ud-min.png" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b>Ripple one-hour three-line</b></td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The three-line break chart hour (Chart ) shows a sideways pattern that encountered a bullish breakout. The signal to buy was on the close of the bullish line. With a crypto in a low price range of Ripple, many traders are looking to buy and hold, and three-line provides a good way of locating where to put on a position.</span></b><br /><div><div class="post-title-container" style="background-color: white; box-sizing: border-box; color: #374147; font-family: &quot;open sans&quot;, helvetica, arial, sans-serif; font-size: 14px;"></div><br /><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid rgb(204, 204, 204); padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-12599106711813170922018-09-06T02:40:00.000-07:002019-09-08T10:50:31.736-07:00Top 7 things You Didn't Know About Market Sentiment Trading Set Ups !<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This is common sense and part of our daily experience that When driving a car on the highway, we do not notice all of the details of all of the cars near us. We only pay attention when a car in front of us is swerving. It is a break in the pattern. It is a signal to act upon. From a sentiment point of view, a signal is a change in the sentiment direction and in the particular alignment of sentiment in multiple time frames. Signals and set-ups can be sorted into two types: Position Trading Signals and Momentum Trading Signals.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">1. Position Trading Sentiment Set-Ups</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A position trade is characterized by a longer duration where the trader is riding a strong sentiment force. Positions can have durations of going beyond a day and sometimes can be several weeks. Sentiment analysis can assist the trader in pinpointing the direction and where to enter.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">At least two time frames are necessary for a sentiment position trade. First a higher time frame and then a lower time frame. The higher time frame provides a background verification of the strength and direction of the sentiment. A lower time frame provides a trigger for entry. Three duration views are also acceptable and provide extra granularity for detecting sentiment. The key point is to enter only in the direction of the higher time frame. Deciding which time frames should be used depends a great deal on the style of the trading. A position trader, looking for inter-week positions might choose a weekly duration as the higher time frame, and a daily duration as a lower time frame. A day and a two hour is another combination. A six hour and a 30 minute combination is also worth exploring.</span></b><br /><br /><b><span style="font-size: large;">How about timing the entry? If a trader wants to go long, should the chart be pointing into an upward direction? If a trader wants to go short, should the chart be pointing into a downward direction? The answer is not that straightforward. The critical factor for entry is the condition that prices, even though are moving in a certain direction, have had a pull-back which is followed by a reversal back in the prior direction. In other words, the price tried to reverse direction, it did, but failed and swung back. The swing back makes the optimal entry point the moment when the prices are moving back toward the higher time frame direction! This can be called a U-turn, named after a car shifting directions from going one way to the opposite way. Hopefully, it is a legal U-turn.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A good way to visualize the power of the U-turn as a trading signal is the analogy of a car moving fast approaching a curve. The angular momentum makes it difficult for the car to slow down and straighten out. Similarly, when a price pulls back and then turns back around, the energy is of high momentum and is likely to carry the price much further. A U-turn or swing back shown in 3 line break charts provide a high-level of confirmation that sentiment has reversed and into the higher 3 line break time frame.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">2. Sentiment Alignments for Position Trading</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us examine several snapshots of possible alignments for a sentiment position trade, and explore which alignments offer a high probable position trade set-up.</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="color: red; font-size: large;">Sentiment condition: Conflict between one-hour and four-hour sentiment: No condition to trade.</span></b></blockquote><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-DuE37Gx59Ms/W5Dm88cBwOI/AAAAAAAAZtI/9emCZJniRownhp7OQaqS9edTYK3OtUCpwCEwYBhgL/s1600/untitled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1249" data-original-width="629" height="640" src="https://1.bp.blogspot.com/-DuE37Gx59Ms/W5Dm88cBwOI/AAAAAAAAZtI/9emCZJniRownhp7OQaqS9edTYK3OtUCpwCEwYBhgL/s640/untitled-min.png" width="322" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In the following chart (Chart) we can see that the four-hour, three-line break chart for the AUDUSD is showing a sequence of three consecutive new four-hour high closes. This is depicted in white. We see a large white line break reversal followed by a thin new four-hour high close. But then it was followed by a bigger move to a new high close. Seeing this condition, the trader is biased to be looking for a buying opportunity.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-TwR317x-69w/W5DnSIY8JSI/AAAAAAAAZtQ/lxUYy5illggfgAWKAgsWAdo0qz3Sb-TtwCEwYBhgL/s1600/led-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1248" data-original-width="625" height="640" src="https://1.bp.blogspot.com/-TwR317x-69w/W5DnSIY8JSI/AAAAAAAAZtQ/lxUYy5illggfgAWKAgsWAdo0qz3Sb-TtwCEwYBhgL/s640/led-min.png" width="320" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A next step would be to monitor what the one-hour three-line conditions are (Chart). The most important condition to detect is whether the lower time frame, in this case the one hour, is aligned in the same direction of the higher time frame (four hour). The latest line break pattern on the one hour AUDUSD is clearly black and therefore it is not aligned. Going long is not permitted. The trader would have to wait for the one hour to reverse back into the direction of the four hour, three line.</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="color: purple; font-size: large;">Sentiment condition: Alignment between four-hour and one-hour three-line break: With alignment of a lower one-hour line break.</span></b></blockquote><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-oqQ-edf_QE8/W5Dn6ObpqKI/AAAAAAAAZtY/0c65YbDyLz0juje29eFxbQjyCZEnXwArwCLcBGAs/s1600/untitd-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1251" data-original-width="625" height="640" src="https://1.bp.blogspot.com/-oqQ-edf_QE8/W5Dn6ObpqKI/AAAAAAAAZtY/0c65YbDyLz0juje29eFxbQjyCZEnXwArwCLcBGAs/s640/untitd-min.png" width="318" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In this next example of an alignment match we see clearly that the four-hour USDJPY (Chart) is bullish having had a strong white line break reversal followed by a second new high close. This followed a sequence of bearish black line breaks. The trader can immediately conclude that there is permission to buy and the bullish sentiment is strong. But the next step is to see if there is an alignment of the lower one-hour line break (Chart) in the same direction of the four-hour line break chart. The trader seeing this alignment can enter the trade at the market because the bullish sentiment has reversed in the direction of the higher time frame, and in fact is pushing higher.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-Q__uPu8Lczg/W5DoDVx5SEI/AAAAAAAAZtc/z_7R6anv5FUzJoosp0XgWLb9zgvCNogpwCLcBGAs/s1600/uitled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1256" data-original-width="627" height="640" src="https://1.bp.blogspot.com/-Q__uPu8Lczg/W5DoDVx5SEI/AAAAAAAAZtc/z_7R6anv5FUzJoosp0XgWLb9zgvCNogpwCLcBGAs/s640/uitled-min.png" width="318" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">3. Sentiment condition: Bearish alignment.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us consider a scenario where there is a bearish alignment between a lower and higher time frame</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The four-hour three-line pattern shows a reversal of sentiment into a bearish direction with three consecutive new low four-hour closes. The task now is to go to the lower time frame and see if it is aligned.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-VRg5u58UKoY/W5DofIaOY-I/AAAAAAAAZto/H9IZIQer4SQdbbiEwperfPAGJu-ivYj9QCLcBGAs/s1600/tled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1264" data-original-width="631" height="640" src="https://3.bp.blogspot.com/-VRg5u58UKoY/W5DofIaOY-I/AAAAAAAAZto/H9IZIQer4SQdbbiEwperfPAGJu-ivYj9QCLcBGAs/s640/tled-min.png" width="318" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In this case, we can see that the lower five-minute three-line GBPNZD pattern had a sequence of bullish moves, and then a bearish reversal (Chart). It therefore aligns with the higher four-hour time frame. It is a signal to go short at the market. It is a strong signal because the lower time frame has experienced a reversal 3 line break in the direction of the higher time frame. This is an optimal moment to catch. It is useful to note, that even if the trader misses the close of the lower time frame reversal, if the next 3 line close follows in the direction, it is an acceptable trading entry.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-2mWYWAnOEXA/W5Doxars0GI/AAAAAAAAZtw/WDkuwN5oM-8nr5MqY-FBmWdm2UGzjmlPACLcBGAs/s1600/ued-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1260" data-original-width="631" height="640" src="https://3.bp.blogspot.com/-2mWYWAnOEXA/W5Doxars0GI/AAAAAAAAZtw/WDkuwN5oM-8nr5MqY-FBmWdm2UGzjmlPACLcBGAs/s640/ued-min.png" width="320" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">4. What about Limits and Stops</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In a position sentiment trade, when the excursion of the trade takes time, it incurs the increased risk of being wrong. A position trade is difficult to watch as traders are busy and also reluctant to be slaves to the screen. Therefore, the trader needs to not only ride the direction of sentiment, but also needs to ride the mathematics of the profitability curve. An initial good place to determine a stop and limit strategy is to commit to a reward to risk ratio of 2:1 The trader would put on the market order, for example, to sell, and locate a stop above the previous high close (the white candle before the reversal). The distance between the stop and the market order is the risk and it can vary. The key point is that once the stop is selected, the risk is calculated. Let us call it X. The take profit target in the position trade should at least be 2X.</span></b><br /><b><span style="font-size: large;"><br /></span></b> <script async="" src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script><br /><ins class="adsbygoogle" data-ad-client="ca-pub-6321469897161053" data-ad-format="fluid" data-ad-layout-key="-hv-11-c-3w+i5" data-ad-slot="1849216290" style="display: block;"></ins><b><span style="font-size: large;">This ratio should be the standard applied to each trade. Why? It is because if one is 50% right in the trade, the approach is profitable. Most traders have little patience to do a “stress-test” on their trading strategies. It is a good idea to take the measure of one’s performance, every ten trades, and quantify the average profit per trade, and the average risk per trade. Does it match the 2:1 target? Each ten trade series provides a check-up on the health of the strategy. The downside of this approach is the human factor, where traders have no patience and are not disciplined to stick to the rules. Actually, an effective quick improvement in performance will be accomplished by moving the original stop loss to a break-even position. Then the trader has a free ride!</span></b><br /><br /><b><span style="font-size: large;">By using the mathematics of profitability as a key rule for placing limits and stops, the trader still needs to locate the initial stop and limit, if a position trade is being used. A good approach is to put on a market order to buy when a new high close occurs on the lower time frame. The stop would be then below the previous low close. How far below? Enough to allow the market to vibrate. Then the limit would be located 2× the risk distance. Selling is just the exact opposite. The sell order is placed at the close that the three-line has turned from a bull into the bearish direction (black). The stop is located above the previous high close, and the sell limit target is simply 2× the risk&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-nCXhajVkA3E/W5DpPDH5SXI/AAAAAAAAZt4/axokkIfl9hEZF5xdkjmIj3iJPMOI-z4jACLcBGAs/s1600/ud-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1259" data-original-width="631" height="640" src="https://3.bp.blogspot.com/-nCXhajVkA3E/W5DpPDH5SXI/AAAAAAAAZt4/axokkIfl9hEZF5xdkjmIj3iJPMOI-z4jACLcBGAs/s640/ud-min.png" width="320" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This is simple mathematics. What we are saying is that the goal is to achieve profitability with 50% being right as a first step. After that, optimizing the performance can occur in many ways by examining alternative time frames, and market situations. But profitability is the first goal of any trading.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">5. Back Tests</span></b><br /><br /><b><span style="font-size: large;">It is useful to get a sense of the profitability potential of using line break position trading described in this chapter. In this example (Table), the strategy was back tested using the four-hour three-line, and one-hour three-line, on the GBPJPY as a trigger. This was a set-and-let strategy. We let the system work on its own. No stops were moved to a break-even point.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div id="shadow"><div id="backs"><table class="minimalistBlack"><tbody><tr><td><span style="font-size: large;"><b>Total trades</b></span></td><td><span style="font-size: large;"><b>31</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net pips</b></span></td><td><span style="font-size: large;"><b>729</b></span></td></tr><tr><td><span style="font-size: large;"><b>Total winning trades</b></span></td><td><span style="font-size: large;"><b>16</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net winning pips</b></span></td><td><span style="font-size: large;"><b>1483</b></span></td></tr><tr><td><span style="font-size: large;"><b>Average winning pips</b></span></td><td><span style="font-size: large;"><b>92</b></span></td></tr><tr><td><span style="font-size: large;"><b>Total losing trades</b></span></td><td><span style="font-size: large;"><b>15</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net losing pips</b></span></td><td><span style="font-size: large;"><b>−754</b></span></td></tr><tr><td><span style="font-size: large;"><b>Average losing pips</b></span></td><td><span style="font-size: large;"><b>−50</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net %P/L</b></span></td><td><span style="font-size: large;"><b>5.0819</b></span></td></tr></tbody></table></div></div><div style="text-align: center;"><span style="color: red;"><b><br /></b></span><span style="color: red;"><b>Back test GBPJPY August 7–November 14, 2017</b></span></div><br /><div style="text-align: center;"><span style="font-size: large; font-weight: 700;"><br /></span></div><b><span style="font-size: large;">In Table we did a back test on the GBPJPY using the four-hour three-line, and one-hour three-line strategy. It met the important parameters of profitability. The average win/loss ratio was 16:15, which is essentially break even. However, the average winning pips was 92 versus the average losing pips of −50. The wins were 1.84 × the average loss, generating a profitable system. Once again, keep in mind that this is an unmanaged result. No stops were moved to break even, which would significantly increase the overall profitability.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Another back test was of the GBPUSD using a four-hour three-line, and a one-hour three-line for alignment. In this case we had a win/loss ratio that is actually negative (14 wins/21 losing trades). But the average gain/average loss was quite large: 86/37 for a ratio of 2.3. It is useful to note that this was totally unmanaged</span></b><br /><b><span style="font-size: large;"><br /></span></b><div id="shadow"><div id="backs"><table class="minimalistBlack"><tbody><tr><td><span style="font-size: large;"><b>Total trades</b></span></td><td><span style="font-size: large;"><b>35</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net pips</b></span></td><td><span style="font-size: large;"><b>425</b></span></td></tr><tr><td><span style="font-size: large;"><b>Total winning trades</b></span></td><td><span style="font-size: large;"><b>14</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net winning pips</b></span></td><td><span style="font-size: large;"><b>1214</b></span></td></tr><tr><td><span style="font-size: large;"><b>Average winning pips</b></span></td><td><span style="font-size: large;"><b>86</b></span></td></tr><tr><td><span style="font-size: large;"><b>Total losing trades</b></span></td><td><span style="font-size: large;"><b>21</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net losing pips</b></span></td><td><span style="font-size: large;"><b>−789</b></span></td></tr><tr><td><span style="font-size: large;"><b>Average losing pips</b></span></td><td><span style="font-size: large;"><b>−37</b></span></td></tr><tr><td><span style="font-size: large;"><b>Net %P/L</b></span></td><td><span style="font-size: large;"><b>2.324324</b></span></td></tr></tbody></table></div></div><span style="color: red;"><b><br /></b></span><span style="color: red;"><b>Back test GBPUSD four-hour three-line, and one-hour three-line, August 3, 2017–November 17, 2017</b></span><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">These back tests suggest that the potential of profits aligning a lower with a higher three-line break time frame is strong. The most important testing is forward testing of these strategies. The best way to do this is in a live account trading at only 1:1 leverage. For example, a 10,000 account would permit a nominal position size of 10,000 on a trade. This is commonly known as a mini-lot. A standard lot is 100,000 generating a value of approximately $10 per pip. This may vary slightly depending on the currency pair traded.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">6. Momentum Sentiment Trading: FX Rodeo</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Momentum sentiment trading is one of the most exciting set-ups and is the opposite of position trades. It requires no target, no limits, and no stops! It is purely riding the sentiment wave! In it, the trader experiences the sentiment rather than analyzes it. Another way to understand the basics of this momentum set-up is through the analogy of the rodeo. In the classic American cowboy western rodeo, the cowboy sits on a bull locked in behind a gate. The gate opens and the cowboy is challenged to stay on that bull until it throws him off!&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In these bull-riding rodeos, eight seconds is considered to be champion duration. What is most interesting is that the cowboy gets thrown off when he anticipates the underlying movement of the bull. If the bull surprises the cowboy and sways another way, he is thrown off. So, let us visualize a sentiment trade as an FX Rodeo. The underlying currency pair is the animal. If we are buying the USDJPY, then one can call it a dollar bull ride. f one is selling the USDJPY, then one can call it a yen bull ride. That keeps the analogy intact!</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Before we trigger the entry, first we need to confirm that there is an alignment of sentiment of the lower time frame with the higher time frame. But the critical momentum trade signal is when the one-minute Renko aligns with the five-minute three-line. For this sentiment wave rider, or FX Rodeo strategy, a five-minute three-line chart would be very useful. We can see that the five-minute three-line is USDCAD.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">We want to ensure that at a micro-detection level, there is also the same sentiment to enter the position. To do this we turn to the Renko bricks.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us look at a trade trigger using Renko. The trader in Chart&nbsp; is looking to sell and the trigger condition would be only if the Renko bricks had shifted from a sequence of white bricks to black bearish bricks. The trader seeing this shift can enter a sell trade in the market. The alignments are solid as the one-minute Renko is confirming a persistence down and is aligned with the five-minute three-line.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-GjcwaZAxhCw/W5DpeVQ4MfI/AAAAAAAAZt8/kb8GCOIB1U07DRE-JKvTpF8zs_o-ItVzQCLcBGAs/s1600/itled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1257" data-original-width="631" height="640" src="https://3.bp.blogspot.com/-GjcwaZAxhCw/W5DpeVQ4MfI/AAAAAAAAZt8/kb8GCOIB1U07DRE-JKvTpF8zs_o-ItVzQCLcBGAs/s640/itled-min.png" width="320" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The five-minute three-line is assumed to be aligned with a higher time frame. A buy trigger is exactly the opposite with the 10 pip Renko bricks shifting into a bullish reversal with one or two bricks breaking out of resistance (Chart). It is useful to note that there is not a prescribed number of Renko bricks that would trigger an entry or an exit. The key is whether the price has shown a confirming shift in direction.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">7. Where are the Stops and Limits?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">One might be tempted to ask: where are the stops , where are the targets? How does one stay on the trade? The trader simply stays on until there is evidence against the direction. The evidence is the emergence of Renko bricks in the opposite direction of the trade.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">As soon as a Renko brick 10 pips is closed of the opposite color, jump off. This means, realistically, that the risks to the trade is 10–15 pips because of possible slippage movement. It also means that the sentiment direction can continue to go a significant distance into very nice profits of 50 or more pips!</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">An important effect of this strategy is also how it augments profits. Consider the dilemma facing the forex trader when the trade reaches a target level. Should he get out? Most traders just get out when they reached a target. This has a logic to it, but it is flawed because the reason to get out should be when there is evidence of a rising threat against the position.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Since commonly used technical analysis set-ups simply provide a target, it is understandable that a trader gets out when the target is reached. But it is not optimal. Too often getting out at a take profit limit leaves money on the table as the price continues to go in the direction of more profits. With the one-minute 10 pip Renko bricks the trader can stay in longer beyond a target.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The take-away from using this strategy should be that it is a pure price action/momentum trade. The alignment sets up the trade, but the entry is pure Renko breakout. The trader simply rides the sentiment, without being encumbered by intentions. Let the price action work its way.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The only task of the trade is to ride the animal spirit of the market! There is one more very important effect, and it is psychological. The sentiment momentum trade relieves thetrader of the burden of too much thinking and analytics. In fact the trade approximates pure experience.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Does this strategy generate profits? An example of a real trading record is shown in Table. The trader, Mr. G, a student of this technique, shows the following performance after initial training. From a period of April 2 to April 11, 40 trades were placed using the rules of FX Rodeo Momentum trading described in this chapter.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-vaavIlkqhxs/W5D30_nf6NI/AAAAAAAAZuM/Qymwwu0FkJYl3RNmIzWasGKkZBV6kaw5wCLcBGAs/s1600/Forex%2BTrading%2BArena%2B%2BBest%2BMarkets%2BSentiment%2BTrading%2BSet%2BUps%2Bfor%2Bpro%2Btraders-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="317" data-original-width="652" height="310" src="https://4.bp.blogspot.com/-vaavIlkqhxs/W5D30_nf6NI/AAAAAAAAZuM/Qymwwu0FkJYl3RNmIzWasGKkZBV6kaw5wCLcBGAs/s640/Forex%2BTrading%2BArena%2B%2BBest%2BMarkets%2BSentiment%2BTrading%2BSet%2BUps%2Bfor%2Bpro%2Btraders-min.png" width="640" /></a></div><div style="text-align: center;"><span style="color: red;"><b>Performance example</b></span></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">We have an excellent performance of 82.5% winning trades, and an average gain/average loss ratio of 1.4. The challenge ahead for this trader is to maintain this record as he takes on bigger positions.</span></b><br /><div><div style="text-align: center;"><br /></div></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-41537267089442093642018-09-05T00:21:00.000-07:002019-09-08T10:21:52.642-07:00Resources to Help You Know About Central Banks and their Role in Moving Currency Markets ?<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Having covered the key fundamental areas of market forces and conditions, the next step in trading <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2018/09/what-is-fundamental-analysis.html">fundamentals</a></span> is gaining an understanding of the key role that central banks have on currency markets.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The elephant in the forex trading room is the central bank&nbsp;of a country. What central banks do is design and implement monetary policy. Their instruments of monetary policy are mainly expanding or contracting the supply of money, and varying the level of interest rates. There is controversy as to whether the central banks should have explicit rules for shifting monetary and interest rate policies, or whether policy should be situational. Whether one agrees with this mode of policy making is irrelevant, at least from the perspective of the trader. Whether one believes that the central banks are politically motivated or manipulated is also irrelevant.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">What is more important is to understand that every moment in time, expectations about changes in central bank intentions for stimulus, or contraction will impact price direction. The market, in a real sense, is a crowd of traders always sensing a potential shift in expectations about the central banks’ near-term actions. Therefore, <span style="color: red;">forex traders who want an edge in identifying currency direction are advised to gain a better understanding of central bank policies and behaviors.</span> Ironically, even though central bank decisions are so important, few traders actually bother to read central bank statements. This is unfortunate as the central bank statements, and changes in those statements, are our modern versions of “tea leaves,” and provide powerful leading indicators for predicting the direction of a currency pair.&nbsp;</span></b><br /><br /><b><span style="background-color: yellow; color: blue; font-size: large;">Stimulate or Tighten : The Policy Choices of Central Banks</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us begin by asking when and why would a currency strengthen ? The direction of currencies does not occur by accident. It has a lot to do with central bank actions and policies. There are two major causes of an increase in the attractiveness of a currency. First, a currency will strengthen when there are expectations that the demand for that currency will increase. For example, if the global economy is growing and needs more crude oil, exporters of crude oil, such as Canada, will experience a greater demand for Canadian dollars.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">If there are expectations that China will increase in growth, it will need more copper and therefore there will be a greater demand for Australian dollars, as Australia is a big exporter of copper. If there is a trade war between the USA and the rest of the world, though protectionist tariff policies are expected, some currencies will be weakened as their country’s export potential is perceived to be weakened. Others may strengthen. For example, a tariff war between the USA and China will likely impact soybean prices and Brazil may benefit as a substitute exporter of soybeans to China, thus strengthening the Brazilian Real. In the longer term, the country that has stronger interest rates will have an edge in the competition for capital in-flows. This is also known as “<a href="http://www.forextradingarena.com/2013/10/what-is-carry-trade_29.html" style="background-color: yellow;"><span style="color: blue;">the Carry Trade</span></a>,” which virtually disappeared after the 2008 financial collapse . But as global recovery occurs, this may very well be a major recurring phenomenon. From a general point of view, any projections or forecasts about economic growth in a country are actionable knowledge about the probable strengthening or weakening of a currency.</span></b><br /><br /><b><span style="font-size: large;"><span style="color: red;">Global growth and estimates of global growth are taken into account by central banks. </span>The reason is that central banks look to stimulate growth when needed, and to restrict growth when it threatens to exceed inflationary targets. Increasing the money supply and decreasing interest rates are the main tools used. This does not mean that they work directly. The transmission mechanism within an economy to affect central bank intentions is not direct and may often not work out as expected. The recent era of low interest rates and in fact negative rates (in Europe and Japan) have had a less than immediate stimulus effect . Even though the Federal Reserve, in response to the 08 collapse, significantly increased its balance sheet, by trillions of dollars, the real impact of printing money is less impactful until banks expand their loaning.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It is estimated that of the total money supply, State money (money printed by the Feds) accounts for only 20% of the supply. Bank money (private money being lent out) accounts for 80%. The economist Steve Hanke, of Johns Hopkins University has underscored the critical role that Bank money has on stimulating economic activity or reducing it, when regulations restrict bank lending.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It is quite possible that the money supply does not reach as expected by a central bank, consumers, or corporations, through the credit market due to restrictions on lending and increased standards of risk control. This is known as a transmission problem and is an unsolved challenge of the central banks. In fact, the leading authority on measuring money supply, Professor Barnett, has argued that the Federal Reserve incorrectly measures the money supply (Getting it Wrong: How Faulty Monetary Statistics Undermine the Fed, the Financial System and the Economy). The key point the forex trader needs to understand is that central bank policies are prone to error and even failure. It is important to watch whether the private money supply is actually reaching companies.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: x-large;">The End of the Era of QE</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-5F7OGBB4Qwg/W4-CV5tnqxI/AAAAAAAAZqA/NCw4R5OPx94p3gDrPOYUw0bx11GRH5x5gCLcBGAs/s1600/QE-operation-Sept11-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="330" data-original-width="482" height="438" src="https://4.bp.blogspot.com/-5F7OGBB4Qwg/W4-CV5tnqxI/AAAAAAAAZqA/NCw4R5OPx94p3gDrPOYUw0bx11GRH5x5gCLcBGAs/s640/QE-operation-Sept11-min.png" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In any case, central bank stimulation known as quantitative easing (QE), with low to near zero interest rates dominated central banks from the 2008 Financial collapse to 2017 when interest rates started increasing again. The weakening of interest rates was so low, “that the yield on the worlds principal sovereign benchmark security made an 800 century low of 1.318% in July 2016” (Grant interest rate observer, December 1, 2017.) As of the beginning of 2018, the shift to increasing interest rates by the central banks is likely to continue. Which central bank will lead the way for ward into 2018 and 2019 in this tightening? Which central banks will lag behind? The answers to these questions will help to shape prediction of the direction in currency pairs.</span></b><br /><br /><b><span style="background-color: yellow; color: red; font-size: large;">Inflation Targeting</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Few traders who are alive today remember the time when inflation was soaring and a threat to the economy of the USA. We have to go back to the 1970s. But the era of increasing inflation may in fact be coming. Traders will need to update their knowledge base about economies and inflation. Basically, when economies are growing, the threat of an increasing rate of inflation becomes a front-burner issue for the markets. Central banks look to tighten monetary policy and increase interest rates to avoid overheating.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It is a balancing act. Central banks have implemented a macro economic model where a 2% inflation target is accepted as the point at which an economy has a balance between growth, full employment without overheating into unacceptable inflation. That, at least, is the desire of the central banks.When inflation data demonstrate low inflation pressures (keeping an economy below the 2% rate), central banks look to stimulate that economy by increasing the money supply (through asset purchases such as bonds), and by reducing interest rates.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-6cCWfjGBbkg/W4-D0QD1X6I/AAAAAAAAZqM/ooFw8FhFqV0WZO9-dWQFpZxx58kz2uFPACLcBGAs/s1600/w_Inflation-kqhH--621x414%2540LiveMint-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="414" data-original-width="621" height="426" src="https://3.bp.blogspot.com/-6cCWfjGBbkg/W4-D0QD1X6I/AAAAAAAAZqM/ooFw8FhFqV0WZO9-dWQFpZxx58kz2uFPACLcBGAs/s640/w_Inflation-kqhH--621x414%2540LiveMint-min.jpg" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">From a trader’s perspective, if the market expects that the central bank will act to stimulate an economy, the currency will weaken because the expectation of stimulus goes in hand with an expectation of no increase in rates. In contrast, if the totality of data coming to the central bank indicates that an economy is growing, employment is strong, and wage growth is increasing, the central bank is generally going to seriously look at contracting policy mechanisms, reducing their bond purchases, and increasing interest rates. All of this is done to head off the overheating of that economy.It is, however, often not a stimulus versus contraction choice.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There is a third middle choice: tapering. Tapering is reducing stimulus by reducing the bond or asset purchases of the central bank. A central bank is not likely to go cold turkey from stimulus therapy. Instead, it chooses tapering. This is what the European Central Bank chose in the latter part of 2017 by reducing its bond purchases, but not yet increasing interest rates. In fact the ECB did announce in June of 2018 that they would end stimulus in December of 2018. But they did not forecast or project an increase in rates. The result has been greater volatility in the Euro currency.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">Inflation Projections and Expectations are Key</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Certainly inflation data and expectations about inflation are becoming more important and at the center of whether a currency will increase in value. Keep in mind that inflation forecasts are prone to error. It is not an exact science. In fact, the state of low inflation, even in the contexts of full employment in the USA, is an example of a disconnect between forecasts and what the models are predicting. Economic data is now more prone to error because of massive shifts in the global economy where technological innovation is suppressing prices.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://www.economicshelp.org/uploaded_images/mktcpinov09large-721542.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="397" data-original-width="479" height="530" src="https://www.economicshelp.org/uploaded_images/mktcpinov09large-721542.gif" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It’s important to note that deflation is often part of the scope of concern of the central banks. Deflation, which is the falling of prices, discourages consumers to save and avoid spending and therefore slows the economy even further. In particular, the Bank of Japan has been especially vigilant in fighting deflation. In response to deflation fears, the Bank of Japan has been aggressive in trying to stimulate the economy of Japan, to the extent of introducing negative interest rates. Here is what their monetary statement said on December 21, 2017:At the Monetary Policy Meeting held , the Policy Board of the Bank of Japan decided upon the following. (1) Yield curve control The Bank decided, by an 8-1 majority vote, to set the following guideline for market operations for the intermeeting period.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">[Note 1] The short-term policy interest rate:&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank. The long-term interest rate: The Bank will purchase Japanese government bonds (JGBs) so that 10-year JGB yields will remain at around zero percent. With regard to the amount of JGBs to be purchased, the Bank will conduct purchases at more or less the current pace – an annual pace of increase in the amount outstanding of its JGB holdings of about 80 trillion yen – aiming to achieve the target level of the long-term interest rate specified by the guideline.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">Brexit and Inflation</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The reaction of the Sterling to the Brexit vote demonstrates a classic relationship between currency values and inflation. The shock wave of the Brexit vote caused an initial significant decline in the currency. After Brexit, the GBPUSD declined by nearly 11% causing an increase in inflation as imports became more expensive.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="color: red; font-size: large;">There are estimates that a decline of 10% in Sterling versus the euro increases UK prices by 3.8%.</span></b></blockquote><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A major reason that a trader should not ignore central bank statements is because the central bank does not want to surprise and disrupt markets. They need stability in markets and transparency in policy to enable the effective transmission of policy through the markets. A central bank shock is at all counts to be avoided. This makes central bank statements one of the most salient leading fundamental forces.This does not mean that markets are not surprised when a central bank decision occurs. An excellent example is the Bank of England decision (November 2) to raise rates for the first time in ten years. Conventional wisdom would expect the currency to rise, since greater rates are attractive and should strengthen a currency. But in this case the Sterling fell.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-mjgSPpdn8wE/W4-AzWPZ3lI/AAAAAAAAZp0/dPw9kVjXZrwOSGOQ9OiKvrsOmZHhKRLWgCLcBGAs/s1600/untitled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1293" data-original-width="716" height="640" src="https://2.bp.blogspot.com/-mjgSPpdn8wE/W4-AzWPZ3lI/AAAAAAAAZp0/dPw9kVjXZrwOSGOQ9OiKvrsOmZHhKRLWgCLcBGAs/s640/untitled-min.png" width="354" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The reason was that the central bank gave the market no expectations of any near term further increase in rates. This is similar to when in the equity markets, a stock issues a strong earnings report, but the markets expect that it cannot continue to be that strong.The point to keep in mind is that central bank statements, and often the news conferences that follow, unleash the important force of expectations. Expectation uncertainty about what the central banks will do at their next scheduled rate deliberations causes the prices to move and change direction. Once again, exclusive focus on <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2013/10/forex-technical-analysis-does-it-work_9.html">technical analysis</a></span> will fail to provide the trader the edge in trading central bank decisions.</span></b><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-39766969464647858962018-09-04T01:26:00.000-07:002019-09-08T10:21:52.639-07:00How To Understand Quickly Bonds Role As A Market’s Vigilantes !<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When markets experience anxiety about conditions, money seeks safer assets. Government Bonds fulfill the role of providing a relatively safe place for capital. Bond markets are often overlooked by forex traders because of the mind-set that currency price charts are sufficient to understand and predict direction. However, a great deal of insight into market expectations on currencies can be gained by following bond markets.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The <span style="background-color: yellow; color: red;"><a href="http://live.forextradingarena.com/search/label/Bond">bond market</a></span> is known to provide a gauge of macro attitudes on the risk environment regarding a country, known as “<span style="color: red;">bond vigilantes</span>.” Consider the fact that the 10-year US bond yield on September 30, 1981 reached 15.8%. A clear warning of a very risk-off environment was developing. On December 22, 2017, as the year ended the yield on the 10-year bond reached a 2.54%. Traders will note that when the 10-year US note yield probes or surpasses 3%, a great deal of attention will be generated on the Bond market as a potential omen of the beginnings of a risk-off market.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-CUAk546l4Ks/W445ivCc-CI/AAAAAAAAZmI/kDlzWvISpaIAXlghjQLPYb7CFY-02ccKACLcBGAs/s1600/bonds-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="516" data-original-width="918" height="358" src="https://4.bp.blogspot.com/-CUAk546l4Ks/W445ivCc-CI/AAAAAAAAZmI/kDlzWvISpaIAXlghjQLPYb7CFY-02ccKACLcBGAs/s640/bonds-min.jpg" width="640" /></a></div><br /><b><span style="font-size: large;">It is also particularly relevant to measure the yields and perceived relative risk of the 10-year bond of different countries. For example, the 10-year government bond of Germany offers a much lower yield than the 10-year government bond of Spain. It is because the markets require higher yields to compensate for the greater perceived risk of Spain.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Underscoring the importance that bond patterns are harbingers of economic changes, the Financial Times, December 11, 2017 reviewed the China markets and led with a headline: “China volatility clouds Investment Outlook. Sell-off prompts fears of impending slowdown as government bond yields jumped.” Evidently, the Bond Vigilantes are a global phenomenon !</span></b><br /><b><span style="font-size: large;"><br /></span></b><div id="shadow"><table class="minimalistBlack"><thead><tr><th><span style="font-size: large;">Interest rates</span></th><th><span style="font-size: large;">Yield</span></th></tr></thead><tbody><tr><td><span style="font-size: large;"><b>US Government 10-year</b></span></td><td><span style="font-size: large;"><b>2.43</b></span></td></tr><tr><td><span style="font-size: large;"><b>UK Government 10-year</b></span></td><td><span style="font-size: large;"><b>1.23</b></span></td></tr><tr><td><span style="font-size: large;"><b>YGerman Government 10-year</b></span></td><td><span style="font-size: large;"><b>0.43</b></span></td></tr><tr><td><span style="font-size: large;"><b>Japan Government 10-year</b></span></td><td><span style="font-size: large;"><b>0.05</b></span></td></tr><tr><td><span style="font-size: large;"><b>US Government 30-year</b></span></td><td><span style="font-size: large;"><b>2.76</b></span></td></tr></tbody></table></div><div style="text-align: center;"><span style="color: red; font-size: large;"><b>Source: Financial Times</b></span></div><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="font-size: large;"><span style="color: purple;">The trader should look carefully as to whether the US 10-year bond yield is increasing compared to other countries.</span>&nbsp;</span></b></blockquote><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This is important because capital will tend to flow to the US dollar and strengthen it as a place of greater return. An easy source for finding the different yields among key countries is the Financial Times (Table). In scanning the comparative yields, we can see a striking difference between the 10-year US Treasury yield of 2.49% and the Japanese Government 10-year yield of 0.05%. In this observation, the question arises of why the Japanese 10-year yield remains close to 0%? The forex trader should know the answer. The short answer is that the Bank of Japan was forcing the 10-year note to be zero to encourage spending as part of its stimulation policy called QQE (Quantitative and Qualitative Easing).</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">Bond Market Shows Inflation Expectations</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-k4IUtSU_yIY/W445xt0qDlI/AAAAAAAAZmM/Chfg60LlrI8y-oRDr_H4xRUQQ27jW4QhgCLcBGAs/s1600/maxresdefault-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="360" src="https://3.bp.blogspot.com/-k4IUtSU_yIY/W445xt0qDlI/AAAAAAAAZmM/Chfg60LlrI8y-oRDr_H4xRUQQ27jW4QhgCLcBGAs/s640/maxresdefault-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A quick check on whether inflation expectations are increasing can be gained by looking at an <span style="background-color: yellow; color: blue;"><a href="https://live.forextradingarena.com/search/label/ETFs">Exchange Traded Fund (ETF)</a></span> that tracks these expectations as expressed in the bond market. ProShares Inflation Expectations ETF (Symbol Rinf.k) (Chart 2.7). The chart indicates the upward direction of the share price of this ETF. By the end of 2017, inflation expectations were clearly going up and in sync with Federal Reserve projections. Let us take a closer look at how inflation expectations are generated.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-C9RChLSsOLA/W448_Tz0omI/AAAAAAAAZmc/NSxJaBAXHtIuz155vjRcvMRwlaJJgXNRACLcBGAs/s1600/untitled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1303" data-original-width="727" height="640" src="https://2.bp.blogspot.com/-C9RChLSsOLA/W448_Tz0omI/AAAAAAAAZmc/NSxJaBAXHtIuz155vjRcvMRwlaJJgXNRACLcBGAs/s640/untitled-min.png" width="356" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">TIPS</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">TIPS are a key factor in the inflation expectation equation. Here is what the US Treasury says about TIPS:</span></b><br /><br /><b><span style="font-size: large;">Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater. TIPS are issued in terms of 5, 10, and 30 years.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The key idea behind tracking inflation expectations is to understand that a Treasury Yield is composed of the TIPS yield + Expected Inflation. So by tracking the difference between the TIPS and the Treasury Yield we are able to track inflation expectations (Table). If the spreads narrow towards 0 and in fact became negative, we have conditions known as a flattening yield curve.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div style="text-align: center;"><b><span style="color: blue; font-size: large;"><span style="font-family: &quot;cambria&quot; , &quot;minion pro&quot; , &quot;times new roman&quot; , &quot;times&quot; , serif; line-height: 28.39px;">The US dollar</span><span id="ITerm29" style="font-variant-east-asian: normal; font-variant-numeric: normal; line-height: 28.39px;" xmlns="http://www.w3.org/1999/xhtml"> </span><span style="font-family: &quot;cambria&quot; , &quot;minion pro&quot; , &quot;times new roman&quot; , &quot;times&quot; , serif; line-height: 28.39px;"> index</span></span></b></div><div id="shadow"><table class="minimalistBlack" style="text-align: center;"><tbody><tr><td><span style="font-size: large;"><b>10-year vs 2-year yield</b></span></td><td><span style="font-size: large;"><b>58.6</b></span></td></tr><tr><td><span style="font-size: large;"><b>30-year vs 5-year yield</b></span></td><td><span style="font-size: large;"><b>58.1</b></span></td></tr></tbody></table></div><div style="text-align: center;"><span style="color: red; font-size: large;"><b>Source: Thompson Reuters</b></span></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">As mentioned earlier, the forex trader does not have to worry about what to follow, the ETF does the job for us. Still, let us be sure that one understands why this is important to the forex trader? The reason is that a rising expectation in inflation will create bullish pressures on the US dollar and vice versa. There are similar ETFs that track inflation expectations for other countries.</span></b><br /><br /><b><span style="background-color: yellow; color: red; font-size: large;">Flattening and Inverse Yield Curve</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Let us look at the famous concept of the flattening yield curve. It is very well known as a leading indicator of a slowdown in the economy. This is when the difference between a 10-year and 2-year Treasury yield is narrowing (or the 30-year and 5-year curve (Table 2.3)). The short-term yield rises when the central bank seeks to raise rates. But the longer-term yield does not go up if expectations of longer-term inflation and less long-term growth are also occurring.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">On December 24, 2017, these two comparisons were calculated by Reuters:</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Here is what the president of the Minneapolis Federal Reserve described in relation to the yield curve at the end of 2017:</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="font-size: large;"><span style="color: purple;">I believe the FOMC’s rate increases are directly affecting the yield curve: As the FOMC has raised rates, the front end of the curve is moving up with our policy moves, which is to be expected. But because the Committee has been raising rates in a low inflation environment, we are sending a hawkish signal, which is likely holding down the long end of the curve by depressing inflation expectations.</span>&nbsp;</span></b></blockquote><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">An inverted yield curve, where short rates are above long rates, is one of the best signals we have of elevated recession risk and has preceded every single recession in the past 50 years. A very useful further explanation of the concept behind an inverted yield curve can be found in the following New York Times article: What’s the Yield Curve? ‘A Powerful Signal of Recessions’ Has Wall Street’s Attention By Matt Phillips June 25, 2018.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">The Commodity Complex; Crude and Copper</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Crude oil reflects longer-term optimism or pessimism regarding global growth. Although there has been an emergence of “green” technologies, the world still runs on crude oil. Crude oil prices at the end of 2017 began to probe the $60s far from the deep lows at $25 of Jan 2016. Keep in mind the that oil in the $60 (as of April 2018 (see the circle in Chart ) is far from the $140 price in July 2018 (Chart). A sharp increase in crude oil is often in response to geopolitical crises or supply disruptions. Crude price is often a gauge of expectations regarding OPEC’s (Organization of the Petroleum Exporting Countries) capabilities of limiting production. The fracking technology revolution has greatly limited OPEC’s ability to limit supplies. The effect is more of a range of behavior in oil.</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://1.bp.blogspot.com/-eB5kQeQ1bDU/W44_G_iFyGI/AAAAAAAAZmo/ltDYH5QABl4Uv4fKNZN1xoI4iG5ciLALACLcBGAs/s1600/itled-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1222" data-original-width="945" height="640" src="https://1.bp.blogspot.com/-eB5kQeQ1bDU/W44_G_iFyGI/AAAAAAAAZmo/ltDYH5QABl4Uv4fKNZN1xoI4iG5ciLALACLcBGAs/s640/itled-min.png" width="494" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Crude oil on the rise</td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Because Canada is a net exporter of Tar Sands Oil, the Canadian dollar is impacted by crude oil news. If oil prices are increasing, the demand for Canadian dollars will increase and this is a bullish condition. The forex trader should be aware of oil supply data releases and check it on their <span style="background-color: yellow; color: purple;"><a href="http://www.forextradingarena.com/2013/10/secrets-of-fx-news-straddling_30.html">economic calendar</a></span>.</span></b><br /><b><span style="font-size: large;"><br /></span></b><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/-o-skLjxY8DY/W44_Tu54XyI/AAAAAAAAZms/N18oLTNQH3o4rd-2QlUBwZ1-u3Xw4zf7wCLcBGAs/s1600/unti-min.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1158" data-original-width="945" height="640" src="https://3.bp.blogspot.com/-o-skLjxY8DY/W44_Tu54XyI/AAAAAAAAZms/N18oLTNQH3o4rd-2QlUBwZ1-u3Xw4zf7wCLcBGAs/s640/unti-min.png" width="522" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Dow Jones Commodity Price Index</td></tr></tbody></table><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Do not forget copper. Copper is the industrial infrastructure metal that a growing economy requires. It is logical, therefore, that the demand for copper will reflect the expectations of global economic conditions and, in particular, China’s growth expectations. Since Australia is a major exporter of copper, the Australian currency is the one to watch for changes in the global demand of copper.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">One does not have to search far and wide to get a sense of the commodity markets. The Dow Jones <span style="background-color: yellow; color: red;"><a href="http://live.forextradingarena.com/search/label/Commodity%20Live">Commodity Price Index</a></span> is a useful overall gauge of the commodity complex including oil. We can see that the commodity complex has been in a bullish upsurge. If a sell-off occurs in this gauge, traders would see the weakness in commodity currencies such as the CAD, Australian, and New Zealand dollar.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="font-size: large;"><b>Traders should keep in mind that there are actually a variety of Dow Jones Indexes and they can be accessed at:</b></span><br /><span style="font-size: large;"><b>https://us.spindices.com/&nbsp;</b></span><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Understanding which <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2018/09/what-is-fundamental-analysis.html">fundamental forces</a></span> are in play provides the trader with a global and macro view of the markets. While there are a huge number of fundamental factors, those listed in this chapter provide a starting point for the forex trader and a foundational step towards trading with the fundamentals in mind. The challenge ahead is to translate the macro view into the micro view.</span></b><br /><div class="post-title-container" style="background-color: white; box-sizing: border-box; color: #374147; font-family: &quot;open sans&quot;, helvetica, arial, sans-serif; font-size: 14px;"></div><br /><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=blogspot/NDfFM', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY <span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="blogspot/NDfFM" /><input name="loc" type="hidden" value="en_US" /><input p="" type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span> <span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-21192093444850073292018-09-03T23:55:00.000-07:002019-09-08T10:21:52.624-07:00Most Effective key Notes for emerging trading chart patterns !<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">To reinforce a shift in mind-set from an exclusive <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2013/10/forex-technical-analysis-does-it-work_9.html">technical analysis</a></span> view to a <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2018/09/what-is-fundamental-analysis.html">fundamental analysis</a></span> perspective, another way to understand why and how fundamental forces impact market prices is to visualize the market (set of all prices) as a swarm that shifts shape and direction when there is a catalyst/stimulus that probes the boundaries of the swarm.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A single ant or bee is not very smart, but their colony’s behavior emerges as having a nonrandom shape. Watch a school of fish, a flock of birds, or a swarm of bees. Watch how they instantly move and shift shape and form a collective direction. It looks organized. It looks like the direction and forward movement is designed and intentional, but there is no organizer. Similarly, our markets swarm and react to many different variables. The price direction can shift quickly, but there is a discernable pattern.&nbsp;</span></b><br /><br /><b><span style="font-size: large;">Even if the trader does not know what is moving the markets, the shape of the price patterns reveal that something has happened. By looking at the market as being like a swarm the trader can apply <span style="background-color: yellow; color: purple;"><a href="http://www.forextradingarena.com/2015/06/online-forex-trading-techniques_4.html">strategies</a></span> and <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2018/09/how-to-monitor-core-fundamental-capital.html">analytics</a></span> that detect trades that ride that swarm! Based on this underlying feature of swarm behavior, swarm intelligence programs are now emerging that model markets based on equations that model swarm behavior.A recent example of a “currency” that can be best understood as reflecting swarm behavior is <span style="background-color: yellow; color: red;"><a href="http://charts.forextradingarena.com/2018/09/btc-usd-bitfinex-advanced-chart-forex_1.html">bitcoin</a></span>.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-XAeEp3VRMMU/W44pZrGfqMI/AAAAAAAAZlM/XeCRbKZ0YBUEvMLsk1bjaUgRo2Q2Xb_RACLcBGAs/s1600/untitled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1303" data-original-width="715" height="640" src="https://4.bp.blogspot.com/-XAeEp3VRMMU/W44pZrGfqMI/AAAAAAAAZlM/XeCRbKZ0YBUEvMLsk1bjaUgRo2Q2Xb_RACLcBGAs/s640/untitled-min.png" width="350" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="background-color: yellow; color: blue;"><a href="http://live.forextradingarena.com/2018/08/all-cryptocurrencies.html">Crypto currency</a></span> buyers are buying because others are buying and vice versa for sellers. In a similar way, the spread of the influenza virus into a pandemic reflects the same crowd behavior pattern where contagion works in waves. Contagion of a virus assumes a parabolic path until it reaches a peak. These contagion patterns are very similar to market patterns in response to a shock. The take-away for the trader is that the price is not two dimensional, but very much a crowd/swarm behavioral phenomenon. This is a critical knowledge.</span></b><br /><center></center><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">Filtering the Signal from the Noise</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">While the potential number of fundamental variables is enormous, the trader is challenged to filter the signal from the noise. The signal, from a fundamental perspective, is a break in expectations. This brings us to the role of data releases. Some data releases are more important than others. Their importance is directly reflecting the extent that they impact the balance of expectations regarding the future of monetary and interest rate policies.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="color: red;">A Trump tweet is usually less impactful on a currency price, compared to a speech by a central bank chairperson.</span> In looking at a data release, the trader should simply ask whether a surprise in the release would affect expectations regarding central bank actions. One need not be glued to every data release. But it is appropriate for the trader to closely watch central bank decisions, particularly those of the major central banks</span></b><b><span style="font-size: large;">, such as the Federal Reserve Bank, Bank of England, and the European Central Bank.&nbsp;</span></b><br /><div class="separator" style="clear: both; text-align: center;"></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-dHJa4IYNCUE/W44qCeaavdI/AAAAAAAAZlc/Ov8VlfsG4x0nL_PrBY9_F6i4nWsqmL8LgCLcBGAs/s1600/untitled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1331" data-original-width="681" height="640" src="https://3.bp.blogspot.com/-dHJa4IYNCUE/W44qCeaavdI/AAAAAAAAZlc/Ov8VlfsG4x0nL_PrBY9_F6i4nWsqmL8LgCLcBGAs/s640/untitled-min.png" width="326" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Since the recent period of quantitative easing is essentially over, the markets are prone to surprise at a central bank’s decision. When the Bank of England increased rates for the first time since Brexit, on Novmber 2, 2017, the pound moved over 230 pips' The uncertainty in the coming years will be whether central banks will continue to tighten, or pause as the recovery from the great 2008 collapse becomes complete.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">Measuring Risk-Off and Risk-On Conditions</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In addition to scanning the economic calendar, the trader should take a quick overview of market conditions. This is also known as “<span style="color: red;">Regime Conditions</span>,” which is defined by trader Jason Roney as “the total market environment encapsulating all pertinent fundamental, technical, and sentiment data for a particular asset class” Recognizing that for the human trader measuring the total market environment is virtually impossible due to its irreducible complexity, the forex trader can achieve a reliable measure of market conditions by focusing on whether the markets are risk-on or risk-off.Envision a conversation between two traders named Santa and Banta.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div id="shadow"><table class="minimalistBlack"><thead><tr><th><span style="font-size: large;">Underlying asset</span></th><th><span style="font-size: large;">Direction in risk-on markets</span></th><th><span style="font-size: large;">Direction in risk-off markets</span></th></tr></thead><tbody><tr><td><span style="font-size: large;"><b>US dollar</b></span></td><td><b><span style="font-size: large;">Strengthens</span></b></td><td><b><span style="font-size: large;">Weakens</span></b></td></tr><tr><td><span style="font-size: large;"><b>VIX</b></span></td><td><b><span style="font-size: large;">Falling</span></b></td><td><b><span style="font-size: large;">Rising</span></b></td></tr><tr><td><span style="font-size: large;"><b>Yen/dollar</b></span></td><td><b><span style="font-size: large;">Strengthens</span></b></td><td><b><span style="font-size: large;">Weakens</span></b></td></tr><tr><td><span style="font-size: large;"><b>Gold</b></span></td><td><b><span style="font-size: large;">Weakens</span></b></td><td><b><span style="font-size: large;">Strengthens</span></b></td></tr><tr><td><span style="font-size: large;"><b>Bond yields</b></span></td><td><b><span style="font-size: large;">Falling</span></b></td><td><b><span style="font-size: large;">Rising</span></b></td></tr><tr><td><span style="font-size: large;"><b>Crude oil</b></span></td><td><b><span style="font-size: large;">Strengthens</span></b></td><td><b><span style="font-size: large;">Weakens</span></b></td></tr></tbody></table></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Santa, says “How are you trading the US dollar today?” Banta replies: “It looks like the markets are risk-on and therefore I am looking for buying signals.” In a real sense, all directional decisions on trading currencies imply a conclusion on whether the markets are risk-on or risk-off.After all is said and done, equity markets provide evidence of optimism or pessimism on the economic prospects facing a country. Currencies simply are the medium that is converted into <span style="background-color: yellow; color: red;"><a href="http://live.forextradingarena.com/search/label/Stock%20Live">shares</a></span>, <span style="background-color: cyan; color: blue;"><a href="http://live.forextradingarena.com/search/label/Bond">bonds</a></span>, <span style="background-color: lime; color: purple;"><a href="http://live.forextradingarena.com/search/label/Commodity%20Live">commodities</a></span>, and other assets. When markets are risk-on, there is little fear of economic or financial crises. When markets are risk-off, fear of economic difficulties become the focus of attention. Table shows the basic relationship of markets and risk-on/risk-off conditions.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">Summary of Risk-On and Risk-Off Conditions : US dollar</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The US dollar is an important tool for detecting whether the overall market has risk-on or risk-off conditions. The US dollar, however, is a misnomer in the context of forex trading. The dollar in one’s wallet is not the dollar that is traded in a currency pair. From the perspective of a trader, there is no US dollar standing alone without a reference to other currencies. There are, however, three types of US dollar indexes. They are USDX, DXY, and Trade Weighted Indexes. Forex traders use mostly the USDX.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Trade weighted indexes also present evidence of currency strength as they reflect the trading relationship of the US with other countries. The trade weighted index is used by central banks to assess whether a currency is getting too strong or too weak in the context of global trade. For the spot forex trader, the USDX is the most commonly used index to monitor and trade.The USDX provides an easy gauge to track whether the markets are experiencing positive or negative emotions. If the US dollar strengthens, then money flows to US assets.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-g25DXVU-IRc/W44qxNMhgwI/AAAAAAAAZlk/d7anbhJy07gnohM00lrG2IJZJcaJRd2CACLcBGAs/s1600/unled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1295" data-original-width="729" height="640" src="https://1.bp.blogspot.com/-g25DXVU-IRc/W44qxNMhgwI/AAAAAAAAZlk/d7anbhJy07gnohM00lrG2IJZJcaJRd2CACLcBGAs/s640/unled-min.png" width="360" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">If the US dollar weakens, money goes to the sidelines until the fear is over. When focusing on the Eurozone, or Nikkei, or other stock markets associated with a currency, a similar relationship between the equity market and the currency of that country occurs. When a currency weakens, it means that the exports of that country will be more competitive. Export sectors will tend to increase.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">If a currency strengthens, it reduces the profitability of that export sector and the equities associated with that sector decline in value. With regard to the USDX, at first glance, it declined in price after the Federal Reserve raised the rates in December 2017, even though rates and expectation of rates rose. Conventional wisdom would expect the currency to strength alongside rate increases. But this kind of thinking is only partially correct.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The price also has to reflect market emotions about the world economy and geopolitical crises. The result has been a weaker dollar than expected during the rise in rates from 2017 and into 2018. The trader should keep in mind that the US Dollar moves in reaction to multiple forces and it is not two-dimensional in nature.</span></b><br /><br /><b><span style="background-color: yellow; color: red; font-size: large;">VIX</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Here is the Chicago Board Option Exchange’s (CBOE) description of the VIX : The CBOE Volatility Index® (VIX® Index) is considered by many to be the world’s premier barometer of equity market volatility. The VIX Index is based on real-time prices of options on the S&amp;P 500® Index (SPX) and is designed to reflect investors’ consensus view of future (30-day) expected stock market volatility.</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="color: red; font-size: large;">The VIX is known as the “fear index.”</span></b></blockquote><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When it moves toward a low point near support it indicates that the markets are calm and in a buying mode. But when it moves higher toward probing its recent highs and breaking through them, the markets are facing uncertainty and assets are being liquidated into cash. A good example is the week of February 5 and 9, 2018 when the Dow, on Monday February 5, had a range of 1597 points, with a high of 25,520 and a low of 23,923.Only to be followed on February 9 with the Dow Jones Industrial Index falling from a high of 24, 382 to a low of 23,360 (1022 points). During that week the VIX surged in volatility by 25%. Fear took over</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-4bHU0gIF_cg/W44q9o90sbI/AAAAAAAAZlo/GOpVprnKwoMveJQHmqOCZ1v2gOYBz00DwCLcBGAs/s1600/tled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1342" data-original-width="676" height="640" src="https://3.bp.blogspot.com/-4bHU0gIF_cg/W44q9o90sbI/AAAAAAAAZlo/GOpVprnKwoMveJQHmqOCZ1v2gOYBz00DwCLcBGAs/s640/tled-min.png" width="322" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">The Yen Strengthening</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In risk-off conditions, where the market desires to seek a safe haven, the Yen gets stronger. This phenomenon is not thoroughly understood, but it is a reliable pattern when there is increasing fear in the market. The fear could be due to geopolitical crises or a major disaster, such as the Fukishma earthquake of March 11, 2011. When the Earthquake occurred the reaction of fear caused the Yen to strengthen against the US dollar by the enormous amount of 611 pips. It strengthened as market expectations were initially such that the Yen would be repatriated back into the country.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-mPTK0vjXUCc/W44rLnYfL7I/AAAAAAAAZlw/1o_x5vR4EI4kePM6gyuPUwp2DIvsS3tMACLcBGAs/s1600/untid-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1334" data-original-width="676" height="640" src="https://3.bp.blogspot.com/-mPTK0vjXUCc/W44rLnYfL7I/AAAAAAAAZlw/1o_x5vR4EI4kePM6gyuPUwp2DIvsS3tMACLcBGAs/s640/untid-min.png" width="322" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The Yen however, pulled back after these initial fears abated. The Yen also reacted to fears during the US elections as shown in Chart. The chart below confirms how the Yen initially strengthened during US election night in the initial fear that Trump would win. This is classic crowd behavior. By 1:00 am the next morning, the fear was over when Trump was the apparent winner. The Yen acted on US election night as a gauge of <span style="background-color: cyan; color: red;"><a href="http://www.forextradingarena.com/2018/09/what-is-markets-sentiment.html">sentiment</a></span>.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">Gold&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Gold is historically an asset class where it rises in price when there is fear in the market in response to a geopolitical crisis. Sudden event catalysts for gold prices rising generate parabolic moves that can be seen as temporary in nature. Gold usually works in the opposite direction to the US dollar.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-u_xu6o7UCLI/W44rYUlulnI/AAAAAAAAZl4/ox58PRZJaNgUfyMnoQVbmyRgxb9MYWnwACLcBGAs/s1600/utled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1341" data-original-width="683" height="640" src="https://2.bp.blogspot.com/-u_xu6o7UCLI/W44rYUlulnI/AAAAAAAAZl4/ox58PRZJaNgUfyMnoQVbmyRgxb9MYWnwACLcBGAs/s640/utled-min.png" width="324" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Not surprisingly, coinciding with the financial crisis, gold had one of its biggest upward moves in history on Sept 16, 2008. It had an opening price of 779.75 and closed at 863.85 . This is an increase of over 10% in one day. Such a move was a clear omen of the magnitude of the impending and long duration of the financial crises.</span></b><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-86643177677069559902018-09-03T22:26:00.000-07:002019-09-08T10:21:52.694-07:00Most Popular Ways To Monitor Core Fundamental capital market Forces.<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">The contrast between technical and fundamental analysis.</span><span style="font-size: large;">&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2013/10/forex-technical-analysis-does-it-work_9.html">Technical analysis</a></span> is static, and focuses on mapping price action. All the resulting analysis exists in a two-dimensional space along an X axis of time, and a Y axis of price. Technical traders are therefore chartists. They are the equivalent of radiologists who diagnose the structure of the body and detect patterns that point to disease or a breakdown. In contrast, fundamental traders are, in a sense, psychiatrists, and perhaps cosmologists; they diagnose the causation and the forces behind price behavior. Of course, the <span style="background-color: yellow; color: purple;"><a href="http://www.forextradingarena.com/2018/09/what-is-fundamental-analysis.html">fundamental forces</a></span> are inter-market and outside of the two dimensions of a price chart. In a sense, fundamental forces are the third dimension that deserve trader attention in trading currency pairs. While we cannot see fundamental forces, like gravity and electricity, we know they exist and shape our world.</span></b><br /><br /><b><span style="font-size: large;">Fundamental forces are also analogous to the seasons of the weather. Weather is caused by several factors, such as the spin of the Earth, the Moon and tides, uneven heating of the planet, and interaction of different atmospheric pressures. The results are experienced as weather. It is a very dynamic process. Deep in winter, a warm day can occur, but it is an outlier event. It can snow in July in Disney World in Orlando, but do not bet on it (the last time it snowed in Disney World was in 2009). Fundamental forces are the weather on Planet Forex! In another, deeper sense, forex prediction is similar to weather prediction. Take the case of forecasts on hurricanes. Science has not been able to precisely predict when a hurricane will form. It can detect a hurricane pattern, however, once it is formed, and then estimate a probable path.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-TZCGfNJ_9_c/W44WFe5ZpGI/AAAAAAAAZk4/Gkq-97GUX1QWfuCW2DEX1zCWfLrAbF3HACLcBGAs/s1600/Technical-VS-Fundamental-Analysis-Binary-Options-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="362" data-original-width="898" height="256" src="https://2.bp.blogspot.com/-TZCGfNJ_9_c/W44WFe5ZpGI/AAAAAAAAZk4/Gkq-97GUX1QWfuCW2DEX1zCWfLrAbF3HACLcBGAs/s640/Technical-VS-Fundamental-Analysis-Binary-Options-min.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"></div><b><span style="font-size: large;">The limiting factor in weather prediction is known as the Lorenz Butterfly. Basically, the concept states that if you miss the flapping of a butterfly’s wing in your calculations, you will have an error in the forecast that can lead to a large error in accuracy. This phenomenon points to the condition known as irreducible complexity. When applied to <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2014/03/money-making-questions_24.html">forex trading</a></span>, we simply do not know all of the variables that impact the price action, and therefore forecasting price direction is subject to great deal of error. Yet, we can reduce the uncertainty by understanding the core fundamental forces.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">The Set of Core Fundamental Forces</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">How shall we think about fundamentals from the perspective of using fundamentals for trading forex? Let us get right to it. There are many variables that can be considered to be part of fundamentals. Almost too many to count. Which fundamental forces should be detected, and which could be ignored? The answer is simple: The most important fundamental forces for traders are those that result in a shift in bullish or bearish expectations. Let us categorize the different bullish and bearish forces.</span></b><br /><br /><b><span style="background-color: yellow; color: purple; font-size: large;">Forces of Growth</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Growth in an economy is an important bullish force. Anything that contributes to the expectations of continued growth acts to strengthen a currency because a stronger economy attracts capital from outside to buy the exported products of that economy. Expectations of a stronger economy also encourages consumer spending. Expectations of growth spurs increased employment.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">Forces of Decline</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="font-size: large;"><b>An economy slowing down, or expected to slow down, generates a bearish force. When unemployment increases, when inflation gets high, there is a slowdown in actual or projected spending. Some bearish forces are very latent. For example, the aging of the population generates a future slowdown in spending. Japan faces this problem more than any other country. But demographic forces are very slow moving. Additionally, technological innovation is a major deflationary force as it suppresses prices. Tomorrow’s big flat-screen television will be much less costly than today’s. Why not wait to buy it next year? Disruptive technologies and companies such as Amazon and Uber have great success while undermining established sectors. The result is economic uncertaincy generating market anxiety.</b></span><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">Expectations on Interest Rate Direction</span></b><br /><b><span style="font-size: large;"><br /></span></b><center></center><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-J7ETgZh78co/W44WGX4IMGI/AAAAAAAAZlE/NZuKxa2ptD8wmwwHAm8cO1nsy5vCZl8EACEwYBhgL/s1600/images-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="170" data-original-width="297" height="366" src="https://3.bp.blogspot.com/-J7ETgZh78co/W44WGX4IMGI/AAAAAAAAZlE/NZuKxa2ptD8wmwwHAm8cO1nsy5vCZl8EACEwYBhgL/s640/images-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Virtually anything that contributes to expectations of the economic weather changing becomes important because this leads to expectations about interest rate changes. Changes in labor market conditions, including employment, wage price growth, consumer spending, saving rates, and inflation, are force factors that directly strength or weaken bullish or bearish expectations. But to shape our trades we have to get more granular. We have to ask: expectations about what ? It is mostly expectations about whether the central banks will increase, decrease, or continue monetary policies. Since the key tool used by central banks is adjusting interest rates, trading fundamentals becomes trading expectations on interest rate changes! All currency prices ultimately reflect expectations about the direction of interest rates.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">Forces of Fear</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Fear of trade wars, asset bubbles, market corrections, crashes, terrorism, and global slowdowns, all comprise a set of fears that push and pull as fundamental forces on the currency pairs. They are important because they impact the day-to-day, and sometimes, hour-by-hour, market emotions. The trader is advised to be aware of which fears are dominating the news. It is also important to discern which currencies may gain or lose strength in response to the fears. For example, the Canadian, Australian, and Mexican currencies will be sensitive to fears of trade wars. Of course, the US Dollar will be a focus of such fears as well.</span></b><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-1253196941625303732018-09-03T13:13:00.000-07:002019-09-08T10:21:52.601-07:00Amazing Secrets of Resistance and Support Line in Advanced Chart Reading <div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The concepts of resistance and support are part of the foundations of technical analysis. Like trend lines, resistance and support convey assumptions about price patterns that are ambiguous. Just when is resistance or support broken ? When is resistance and support simply being probed ? Current technical analysis of <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2013/10/learn-forex-support-resistance_11.html">resistance and support</a></span> treat those concepts as firm and quantifiable. They are not. We can see the inherent ambiguity in finding resistance and support Price patterns such as triangles and channels are patterns that exhibit similar degrees of vagueness and are imprecise when the trader attributes powers to the patterns that they do not have to predict future price direction Keep in mind that the patterns, which are perceived by traders, are subjective and at best ex-post facto.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-PVJqvQEDmNA/W42TWsVORSI/AAAAAAAAZj4/_QEB7DRAfSom3DjWZc4z-5yeG-AHHl-pQCLcBGAs/s1600/untitled.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1278" data-original-width="650" height="640" src="https://4.bp.blogspot.com/-PVJqvQEDmNA/W42TWsVORSI/AAAAAAAAZj4/_QEB7DRAfSom3DjWZc4z-5yeG-AHHl-pQCLcBGAs/s640/untitled.png" width="324" /></a></div><br /><b><span style="font-size: large;">They are easy to see after they have formed. True patterns in nature are mathematical and can be tested by scientific methods. More importantly, they are inter subjective, which means that other people can confirm them. Price patterns are flawed because they are best-case interpretations. However, patterns do provide evidence of the status of emotions in the market.Fibonacci levels are among the most popular tools for trading and do give insight into the nature of price action. Although the field of technical analysis ascribes nearly magical powers to Fibonacci levels, they are still not reflective of any inherent direction.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-QZks61Lv1nc/W42T1xaA5ZI/AAAAAAAAZkE/hHBLUYYGHuMvwTJhaiUdMt1Xc3Og3kLVwCLcBGAs/s1600/uled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1299" data-original-width="650" height="640" src="https://4.bp.blogspot.com/-QZks61Lv1nc/W42T1xaA5ZI/AAAAAAAAZkE/hHBLUYYGHuMvwTJhaiUdMt1Xc3Og3kLVwCLcBGAs/s640/uled-min.png" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When prices seem to move in <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2014/01/how-to-achieve-90-accuracy-in_10.html">Fibonacci retracement</a></span> ratios it is because that is the way energy moves everywhere (the famous Nautilus shell is a classic illustration of Fibonacci patterns, and the proportions of the human face follow Fibonacci ratios), but this does not mean that they predict where the price is going. Furthermore, markets recognize where the Fibonacci points are and use them to create trading triggers. This creates a self-fulfilling process. Fib lines need to be seen as providing zones of possible resistance and support. The most important weakness in applying Fibonacci analysis relates to the confusion of where to locate a bounce or break off a fib line. This kind of thinking creates a lot of room for error. Just when can a break of a Fibonacci line be considered a break? A break is a very subjective concept. Do we consider a break when the price reaches above or below a Fib line? Or do we have to wait for a candle to close more than once above such a line? The answer may vary among different traders.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-1a1EXVZGfdQ/W42TjziHGTI/AAAAAAAAZkA/RoPjrC4-vUoiP1XBzyMDITFL-beBeV7PwCEwYBhgL/s1600/untitd-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1227" data-original-width="637" height="640" src="https://2.bp.blogspot.com/-1a1EXVZGfdQ/W42TjziHGTI/AAAAAAAAZkA/RoPjrC4-vUoiP1XBzyMDITFL-beBeV7PwCEwYBhgL/s640/untitd-min.png" width="332" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Chart wave analysis (Elliott Wave) is another popular form of technical/teleological analysis that offers traders the promise of finding and riding a direction more accurately. The problem with wave analysis is that it is not falsifiable. Prices are defined as being in waves that are part of an impulse or a corrective sequence. Within each sequence there are mini waves as well. Those who follow wave analysis find comfort in this detailed set-up, until prices do not follow the wave prediction. Rather than accepting the fact of being wrong, wave analysts will say that the price is correcting and then will resume back in the right direction. Many traders have heard the statement: the price will go down and then go up. This is nonsense. It is subjective and vague. It is misleading to the trader who wants to use a method that is reliable. When is a wave based trade wrong ? Wave trading is a form of forecasting that has huge degrees of ambiguity. Riding the wave is easy when one is looking in the rear-view mirror.</span></b><br /><br /><b><span style="font-size: large;">The body of technical analysis also includes popular tools such as indicators and moving averages. They have a major weakness in common: they are lagging indicators. The mathematics of their construction calculates past prices and transforms them using a variety of equations into an indicator number. They should be seen as training wheels for the new trader. As the trader gets more experienced, these wheels are taken off and the trader focuses on the price action itself. Instead, bad habits are hard to change and traders find themselves loading a chart with so many indicators that it looks like a Jackson Pollock painting!</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-gl1C8ywmSmQ/W42UQekPVKI/AAAAAAAAZkQ/sNBT0JvyiBoV3Q_Gn9JG7g_7xFPHWOIVACLcBGAs/s1600/untd-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="407" data-original-width="944" height="274" src="https://4.bp.blogspot.com/-gl1C8ywmSmQ/W42UQekPVKI/AAAAAAAAZkQ/sNBT0JvyiBoV3Q_Gn9JG7g_7xFPHWOIVACLcBGAs/s640/untd-min.png" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">For the new trader, trade set-ups are a common way of starting to trade currencies. They typically offer a combination of different indicators. Bollinger Bands, Fibonacci lines, and moving averages, are very popular set-ups for new traders. They do have a use as they provide an initial framework for finding a trade signal. They promote, however, a key embedded weakness, which is ignoring the price action ! The trader focuses on the set-up which has a counterproductive impact; the signal gets obscured.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">All forms of current technical analysis have in common the problem of egocentric myopia. Technical traders act as if the spot forex charts is all they have, and indeed all they need to be a profitable trader. The belief system of the technical trader is that prices sufficiently and fairly reflect anything the trader needs to know about the outside world. When technical analysis is exclusively relied upon, there is a likely failure of perception. Seeing a chart is not the same as perceiving the forces that are impacting the prices.</span></b><br /><br /><b><span style="font-size: large;">Of course, there is no perfect way to trade markets and currencies, but some mind-sets undermine the trader right from the start. Traders, especially beginners, who spend thousands of dollars on courses that have no real foundations of validity and are sold with hyperbolic promises, are prone to counterproductive behaviors. Having invested thousands of dollars, there is a natural bias toward believing in what was invested. For example, traders keep watching the charts, looking for a technical angle that will be the winning trading signal and a ride to profitability. The fact is that a chart maps current prices and previous movements. They do not reveal what caused the movement !</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-VVjatlB7DIE/W42UayNpwKI/AAAAAAAAZkU/eGb3TAdJukA1NF7Yzf3gmujXJgwvlvQzACLcBGAs/s1600/uitled-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1296" data-original-width="650" height="640" src="https://1.bp.blogspot.com/-VVjatlB7DIE/W42UayNpwKI/AAAAAAAAZkU/eGb3TAdJukA1NF7Yzf3gmujXJgwvlvQzACLcBGAs/s640/uitled-min.png" width="320" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Ultimately, as traders become more experienced, they lose indicators and previous set-ups and focus on trying to understand why a price reached a certain point. The answer lies in understanding the fundamental&nbsp;</span></b><b><span style="font-size: large;">forces that permeate the markets and diagnosing price action not as something that has a goal but is a signature of emotions. It is worthwhile to build a knowledge base of how emotions and markets and, in particular, currency pairs intertwine.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There is one more critical flaw in emphasizing technical analysis that needs to be raised: it ignores the human condition. Traders are told to eliminate emotion from trading. They are taught instead to rely on a set of rules and set-ups. But emotional intelligence is exactly what a successful trader needs to develop and apply. Learning a set-up and a trading technique is relatively easy. But learning how to deal with surprises in price action or a sequence of losses is a key survival skill that technical analysis completely ignores.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A trader that is experiencing acute stress, resulting from a persistent and lingering memory of a loss, is in fact in danger of further losses until the cycle of depression is broken by a big win. Perhaps the American Psychiatric Association should amend its latest Diagnostic and Statistical Manual of Mental Disorders (DSM-5) and investigate “Trader-related disorders !” Until then, traders should pay constant attention to their emotional state and, importantly, to the emotional state of the market.</span></b><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-60335166132210507982018-09-03T12:29:00.000-07:002019-09-08T10:21:52.672-07:00Fundamental Analysis : That Will Motivate You Trading Style !<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Fundamental analysis, or a fundamental view of currency markets, is widely misunderstood. It is not simply about the economic conditions facing a country. Fundamental analysis, when properly understood, contains <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2018/09/what-is-markets-sentiment.html">sentiment analysis</a></span>. Let us state this another way.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Fundamental analysis deals with <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2013/10/secrets-of-fx-news-straddling_30.html">economic forecasts</a></span> and expectations about economic metrics such as CPI (consumer price index), GDP (gross domestic product), employment, and so on. These fundamental expectations involve longer- and medium-term durations. The exact mix of expectation durations is, in fact, always changing. Sometimes expectations of economic outcomes a year ahead may impact current price action. At other times, the immediate geopolitical and global economic conditions have an immediate impact.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-ffO6Aagf2Os/W42KhX5OERI/AAAAAAAAZiw/jfV6ojff7Gc7VHDw6qTFP383kJMCp5L-gCLcBGAs/s1600/Picture1-5-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="845" data-original-width="1500" height="360" src="https://1.bp.blogspot.com/-ffO6Aagf2Os/W42KhX5OERI/AAAAAAAAZiw/jfV6ojff7Gc7VHDw6qTFP383kJMCp5L-gCLcBGAs/s640/Picture1-5-min.png" width="640" /></a></div><br /><b><span style="font-size: large;">In a way, this view of a fundamental structure behind currency movements is similar to recent discoveries in physics of the Higgs boson field. In that major discovery, it has been proven that electrons get their mass as they go through the Higgs boson field. In currency trading we can say that prices get their direction and strength of direction as they go through a field filled with fundamental expectation forces.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Sentiment is the bridge and transmission channel, between long-term and short-term economic expectations that directly act upon the price. Within the rubric of fundamental analysis, sentiment analysis focuses on current expectations about whether prior fundamental forecasts are correct. In other words, sentiment is the measure of the immediate change in expectations, caused by data releases, geopolitical crises, or any other information shock that reaches the markets. Sentiment is about both long-term and short-term expectations.&nbsp;</span></b><br /><br /><b><span style="font-size: large;">Sentiment is how the market expresses emotions. Emotions are always about something and in currency markets emotions are generally about risk and uncertainty. Traders, therefore, need to diagnose what the market movements are about. This contrasts greatly with the current, dominant technical view of markets and currency pairs.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">What is a Currency Pair Price? A Fundamental View</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-jE5CjI8TT5o/W42Kopy5zZI/AAAAAAAAZi0/QRB4GJu5DioDcxe_2X3tNYryuVMyihK5gCLcBGAs/s1600/foreign-currency-market-euro-dollars-recurso-BBVA-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="371" data-original-width="650" height="364" src="https://2.bp.blogspot.com/-jE5CjI8TT5o/W42Kopy5zZI/AAAAAAAAZi0/QRB4GJu5DioDcxe_2X3tNYryuVMyihK5gCLcBGAs/s640/foreign-currency-market-euro-dollars-recurso-BBVA-min.png" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">An exclusive technical analysis view of markets, and in particular currency pairs, is highly flawed. The weaknesses and limits of technical analysis starts with a misunderstanding of what currency prices are all about. The currency pair is, from a technical analysis view of market reality, a point on the X–Y price axis. Charts visualize the price behavior. For example, if the EURUSD has moved 20 pips, from 1.1700 to 1.1720, a line chart will show how this movement has occurred. Candlestick charts show open, high, low, and close prices per unit of time (minute, hour, or other time slices). The X axis represents time. Simple enough. But is that what a price really is?&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The fact is that it is more than a measure on a X–Y axis. The fundamental viewpoint asserts that a currency price and its accompanying charts, are codes that are really enciphered signatures of expectations. A better understanding of how to unlock the codes within each currency pair will enable traders to profitably ride the expectation waves that move currency prices.</span></b><br /><br /><b><span style="background-color: yellow; color: blue; font-size: large;">Flaws in Technical Analysis</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The question arises: If <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2013/10/forex-technical-analysis-does-it-work_9.html">technical analysis</a></span> has these flaws , why is it so dominant? The answer is rather simple. The dominance of technical analysis as a tool for traders is not because technical analysis is totally effective, but because it is easy to sell systems and courses offering hyperbolic performance promises.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-Rl6CrWgmL3c/W42KxdBrxvI/AAAAAAAAZi4/cWL5KHDAoMM0Q0NDMcipXkp9A149LXfagCLcBGAs/s1600/pre-school-Stool-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="400" data-original-width="369" height="640" src="https://2.bp.blogspot.com/-Rl6CrWgmL3c/W42KxdBrxvI/AAAAAAAAZi4/cWL5KHDAoMM0Q0NDMcipXkp9A149LXfagCLcBGAs/s640/pre-school-Stool-min.png" width="590" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It is natural that traders want to find the holy grail for predicting direction. As a result, responding to the desires and hopes of traders, there is extensive marketing of signals and systems, and courses that teach set-ups to respond to this demand. Some systems and signals are profitable. None are profitable all of the time. The products of the trading industry are designed to be produced with minimal viability, because speed to the market is a more important priority than performance effectiveness. As a result, a total reliance on technical set-ups presents many flaws. Let us explore further some of the deep flaws in using technical analysis.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The first deep flaw in exclusive reliance on technical analysis is <span style="color: red;">psychological</span> and <span style="color: red;">philosophical</span>. The very premise that one can predict that a price will reach a target is fraught with problems. The price target is in reality not technical in nature. It is a fabricated human construction. It is as subjective as searching for and finding a face in the clouds. If you look for one you will find it, but it is delusional to believe that the face in the clouds really exists. Similarly, a profit target is a point of hope in the price arena. But in trading, “<span style="color: red;">hopium</span>” is not a useful drug.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The very act of thinking that there is a target inherent in the currency pair price or pattern is also teleological (defined as inferring something has an intention). Inferring intention is a common attribute of human behavior because it is more comforting to deal with an assumed intention then to deal with uncertainty. Consider the following statements: “The price wants to go to the next Fibonacci level”. “The price will bounce off resistance and then move to support”. “The price will break the outer trend line and then move to the inner trend line.” These types of comments are heard every day by traders and reflect the flaw that is inherent in teleological&nbsp;thinking in trading.</span></b><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-26591944786791191932018-08-15T05:34:00.000-07:002019-09-08T10:21:52.628-07:00The 6 Steps Rule for Optimization of the Best Trading Systems - Must Read<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: red; font-size: large;">What is the biggest mistake that do almost everybody when they optimize Forex trading systems? They ignore The 6-Steps-Rule or even doesn’t know about it ! And the market doesn’t forgive that… Don’t do this mistake, learn about it by reading the article…</span></b><br /><span style="background-color: white; font-size: large;"><b><span style="color: red;"><br /></span></b><b><span style="color: red;">As I say earlier the simpler rules and indicators in Forex trading systems the better. So you could use the most simple rules like intersection of fast and slow </span><a href="http://www.forextradingarena.com/2013/11/easy-way-to-determine-forex-trend_8.html"><span style="color: blue;">moving averages</span></a><span style="color: red;">. And we’ll take it for detailed view of the 6-steps-rule that is the last stage to build a successful Forex trading system.</span></b></span><br /><b><span style="background-color: white; font-size: large;"><span style="color: blue;"><br /></span></span></b><b><span style="background-color: white; font-size: large;"><span style="color: blue;">Step 1. Optimization of SLOW </span><a href="http://www.forextradingarena.com/2017/10/chart-trading-strategies1_28.html"><span style="color: purple;">moving average</span></a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">So as you can see on the image below, we use training (in-sample) and testing (out of sample) period. And it is very important to understand that on out-of-sample period we see what we can get on practice using that Forex trading system that we optimize. So let’s draw our attention to the picture below.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-uVgJ0xt_QYA/W3QXddmtPEI/AAAAAAAAY-w/QIWjAU_DaIE4HSGFtep_PvMZIGlOiGiDACLcBGAs/s1600/001%2B.pdf%2B-%2BAdobe%2BReader-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="321" data-original-width="600" height="342" src="https://1.bp.blogspot.com/-uVgJ0xt_QYA/W3QXddmtPEI/AAAAAAAAY-w/QIWjAU_DaIE4HSGFtep_PvMZIGlOiGiDACLcBGAs/s640/001%2B.pdf%2B-%2BAdobe%2BReader-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">We see the dynamics of our deposit that we’ve received after <span style="background-color: yellow; color: red;"><a href="https://www.forextradingarena.com/search/label/OPTIMIZATION">optimization</a></span> of slow moving average. It has a weak trend, but on the testing period we see flat and big drawdowns. It means that in real trading, on practice, we shouldn’t use it because of big risks and small potential profits. But it just step 1! What is gonna change further?</span></b><br /><br /><b><span style="background-color: white; color: purple; font-size: large;">Step 2. Optimization of FAST moving average</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Now we see that the dynamics of our deposit become better. On testing period we see profits, but it still full of risky drawdowns that promise us losses and very uncomfortable trading.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-iQhLqYOZ1BA/W3QXo5OGCnI/AAAAAAAAY-0/8Sd8N2ztF6MRWac-pjOueWjlcwqKgEnrACLcBGAs/s1600/001%2BThe%2B6-Steps-e%2BBest%2BTrading%2BSystems.pdf%2B-%2BAdobe%2BReader-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="320" data-original-width="604" height="338" src="https://2.bp.blogspot.com/-iQhLqYOZ1BA/W3QXo5OGCnI/AAAAAAAAY-0/8Sd8N2ztF6MRWac-pjOueWjlcwqKgEnrACLcBGAs/s640/001%2BThe%2B6-Steps-e%2BBest%2BTrading%2BSystems.pdf%2B-%2BAdobe%2BReader-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">So let’s continue optimizing…</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; font-size: large;"><span style="color: #674ea7;">Step 3. Select an optimum </span><a href="http://www.forextradingarena.com/2015/06/how-to-understand-forex-chart-timeframes_3.html"><span style="color: black;">timeframe</span></a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It is much better. How can we optimize Forex trading systems by <span style="background-color: cyan; color: red;"><a href="http://www.forextradingarena.com/2015/06/how-to-understand-forex-chart-timeframes_3.html">timeframes or timefilters</a></span>? It just needs to go over almost all timeframes that we could. Optimize and test on “daily”, “weekly”, “4 hour”, “1 hour”, “15 minutes”, “5 minutes”, “1 minute”timeframes and choose one that shows the best profits and smallest drawdowns. But also I recommend to add even more timeframes, like 30, 31, 32, 33 and so on… But it needs a special software.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-6fHwwpepQ_g/W3Qawa8rCNI/AAAAAAAAY_I/Z1KFo07_EaggR6uzsHFbCnviHbogdJuTQCLcBGAs/s1600/Screenshot%2B%25281%2529-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="317" data-original-width="594" height="340" src="https://4.bp.blogspot.com/-6fHwwpepQ_g/W3Qawa8rCNI/AAAAAAAAY_I/Z1KFo07_EaggR6uzsHFbCnviHbogdJuTQCLcBGAs/s640/Screenshot%2B%25281%2529-min.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: red; font-size: large;">Step 4. Optimization of risk-limit (stop-loss)</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Stop-loss is an order to buy (or sell) a security once the price of the security climbed above (or dropped below) a specified stop price. It is has a fixed value and usually set up just before order to buy (or sell) is open.</span></b><br /><br /><b><span style="font-size: large;">The stop-loss order is adjusted continually based on fluctuations in the market price, always maintaining the same percentage below (or above) the market price.It is a very important part of Money Management on Forex. Never start to trading without using that!</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-Qq_RU9Wj2_o/W3QXzK5CGAI/AAAAAAAAY-8/ds31suqjOmctZ-0mrqtPnFPzYM30dACjgCEwYBhgL/s1600/001%2BThe%2B6-Steps-Rule%2Bfor%2BOptimization%2Bof%2Bthe%2BBest%2BTrading%2BSystems.pdf%2B-%2BAdobe%2BReader-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="312" data-original-width="603" height="330" src="https://3.bp.blogspot.com/-Qq_RU9Wj2_o/W3QXzK5CGAI/AAAAAAAAY-8/ds31suqjOmctZ-0mrqtPnFPzYM30dACjgCEwYBhgL/s640/001%2BThe%2B6-Steps-Rule%2Bfor%2BOptimization%2Bof%2Bthe%2BBest%2BTrading%2BSystems.pdf%2B-%2BAdobe%2BReader-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; font-size: large;"><span style="color: blue;">Step 5. Optimization of </span><a href="http://www.forextradingarena.com/2013/10/how-to-use-limit-orders-to-increase_4.html"><span style="color: purple;">trailing-stop</span></a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A trailing stop order sets the stop price at a fixed amount below the market price with an attached “trailing” amount. And after it optimization we see that our deposit dynamics looks almost like a line. It is a great result! Now we can expect good profitsand low risks.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-PwFw0CnRexk/W3Qa9nQKYnI/AAAAAAAAY_M/eGMHeeBT4t4wHt4SVlPeNZsS7ebr0jh4ACLcBGAs/s1600/001%2BThe%2B6-Stepsdf%2B-%2BAdobe%2BReader-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="323" data-original-width="609" height="338" src="https://3.bp.blogspot.com/-PwFw0CnRexk/W3Qa9nQKYnI/AAAAAAAAY_M/eGMHeeBT4t4wHt4SVlPeNZsS7ebr0jh4ACLcBGAs/s640/001%2BThe%2B6-Stepsdf%2B-%2BAdobe%2BReader-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: purple; font-size: large;">Step 6. Profit maximization</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">And the last step is to maximization of profits of <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2014/03/how-to-dominate-forex-currency-trading_22.html">Forex trading system</a></span>. It means that you could optimize all the variables that you have optimized before but in this case in the same time. It is not necessary to set up big spreads between first and the last value of period of optimization for each parameter. And we see that the absolute value of our profit become more closer to 25000.</span></b><br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-oICeGhydvAM/W3QcOs5UmsI/AAAAAAAAY_o/jeAWaDQmBWEgMGhMEZkkHTb1yWz1iDkQwCLcBGAs/s1600/001%2B.pdf%2B-%2BAdobe%2BReader-min-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="324" data-original-width="601" height="344" src="https://1.bp.blogspot.com/-oICeGhydvAM/W3QcOs5UmsI/AAAAAAAAY_o/jeAWaDQmBWEgMGhMEZkkHTb1yWz1iDkQwCLcBGAs/s640/001%2B.pdf%2B-%2BAdobe%2BReader-min-min.jpg" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"></div><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-11911193530538122112018-03-05T05:44:00.000-08:002019-09-08T10:21:52.596-07:00What do you need to be successful in the Forex Market ?<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b style="background-color: white;"><span style="font-size: large;"><span style="color: red;">Practically, You need to cut down your manual trading time in such a way that, trading conclusions should be made in short amount of time of investment with lot of experiences. While hitting a trade in </span><span style="color: blue;"><a href="http://www.forextradingarena.com/2013/11/trading-forex-in-tight-position_4.html">forex market</a></span><span style="color: red;"> ; trade entry aspects are less important then your profitable exit strategy.</span></span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-nL6CM99dW5w/Wp1HexE_jRI/AAAAAAAAYfg/Pah2yZ_whJY_DKfBvY1LAY84RJHdPPoGACLcBGAs/s1600/4%2BForex%2BSuccessful%2Btrading%2BStrategies%252C%2B-%2BYouTube-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Practically, You need to cut down your manual trading time in such a way that, trading conclusions should be made in short amount of time of investment with lot of experiences. While hitting a trade in forex market ; trade entry aspects are less important then your profitable exit strategy." border="0" data-original-height="462" data-original-width="930" height="316" src="https://3.bp.blogspot.com/-nL6CM99dW5w/Wp1HexE_jRI/AAAAAAAAYfg/Pah2yZ_whJY_DKfBvY1LAY84RJHdPPoGACLcBGAs/s640/4%2BForex%2BSuccessful%2Btrading%2BStrategies%252C%2B-%2BYouTube-min.png" title="What do you need to be successful in the Forex Market ?" width="640" /></a></div><br /><b><span style="color: purple; font-size: large;">For exact way to </span><span style="background-color: yellow; color: blue; font-size: large;"><a href="http://www.forextradingarena.com/2014/01/how-to-achieve-90-accuracy-in_10.html">90% plus accuracy</a></span><span style="color: purple; font-size: large;"> level you mainly require three following things in sequence...</span></b><br /><div style="text-align: left;"></div><ul><li><b><span style="font-size: large;">1. Practical Knowledge&nbsp;</span></b></li><li><b><span style="font-size: large;">2. Accurate Tools</span></b></li><li><b><span style="font-size: large;">3. Long-term experience</span></b></li></ul><br /><b><span style="background-color: yellow; color: blue; font-size: large;">1. Practical knowledge&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Initiating career in currency market is quite challenging in beginning atleat for 3 - 4 years. As per my opinion no thery knowledge would help you in any tight trading position. Everytime you must find some new level of opportunities on accurate level.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Trading in Forex Market is all about <span style="background-color: cyan; color: blue;"><a href="http://www.forextradingarena.com/2013/10/how-to-kill-odds-of-trading-forex_21.html">Traders mindset</a></span>. You must engage initially in clock around all sessions through week. Mainly focus on ( if required ) American session for better understanding of such high volatile trading situations.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="font-size: large;"><b>There no as such any magical trading robotic kind of instrument is existed on planet ; which can give us 100% guaranteed&nbsp;long term profit from any currency charts. Within our practically based experiences ; we can attend the level of perfection in expected trading situations on basis of knowledge.</b></span><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-5Hn57dLDHgQ/XHLT6gJzgII/AAAAAAAAay8/AKKzbC4sU_kl2u_MawnHwFHYss6i43uUwCLcBGAs/s640/0.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="476" height="640" src="https://3.bp.blogspot.com/-5Hn57dLDHgQ/XHLT6gJzgII/AAAAAAAAay8/AKKzbC4sU_kl2u_MawnHwFHYss6i43uUwCLcBGAs/s640/0.JPG" width="476" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">2. Accurate tools.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">I my self is robo programmer for various trading scripts and trading strategies. The tool you must expect is only perfect mind set not virtual technical malfunctions; because forex brokers are smart enough for making you loose in any situation at any point of time.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Even market make-up or ecn platform brokers can not afford to give long-term profit at all. Within their game plan you must understand switching your funds on multiple genuine fx brokers platform.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">As per my experience, There is no short cut in for ' To be successful Forex Trader '. I have seen 95% people loose money because of emotional and weak psychological attachment in real live trading market at hechtic high volatile complex situations.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="font-size: large;"><b>So, Its better to be in Self generated&nbsp;mind set ; can be used as a tool for more reliable consistent profits.</b></span><br /><br /><b><span style="background-color: yellow; color: red; font-size: large;">3. Long Term Experience</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Just in case if ; You are willing to make money fron forex trading in shorter period of time then try to hire genuine professional forex trader before you make any decision in real live market. Three following thing can kill you if immature decision is taken.</span></b><br /><div style="text-align: left;"></div><ul><li><b><span style="font-size: large;">1. Visual Illusions</span></b></li><li><b><span style="font-size: large;">2. Underestimating&nbsp;fx trend</span></b></li><li><b><span style="font-size: large;">3. Emotional-over confidence</span></b></li></ul><b><span style="font-size: large;">You will earn little less from any professional joint venture trading program rather then loosing your whole hard end money. So hire any professional for genuine and consistent long term profit.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">3 Pillars to a successful Trading Career.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-QZz2nhun_O8/Wp1Hn2FbphI/AAAAAAAAYfk/yh4A6KZh6iwKKMFHDWdwn3TmkGy3sX2JACLcBGAs/s1600/4%2BForex%2BSuccessful%2Btrading%2BStrategies%252C%2B-%2BYouTube%2B%25281%2529-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Practically, You need to cut down your manual trading time in such a way that, trading conclusions should be made in short amount of time of investment with lot of experiences. While hitting a trade in forex market ; trade entry aspects are less important then your profitable exit strategy." border="0" data-original-height="439" data-original-width="885" height="316" src="https://4.bp.blogspot.com/-QZz2nhun_O8/Wp1Hn2FbphI/AAAAAAAAYfk/yh4A6KZh6iwKKMFHDWdwn3TmkGy3sX2JACLcBGAs/s640/4%2BForex%2BSuccessful%2Btrading%2BStrategies%252C%2B-%2BYouTube%2B%25281%2529-min.png" title="What do you need to be successful in the Forex Market ?" width="640" /></a></div><div style="text-align: left;"></div><ul><li><b><span style="font-size: large;">1. Make consistent pips daily.</span></b></li><li><b><span style="font-size: large;">2. maintain daily pips</span></b></li><li><b><span style="font-size: large;">3. Repeat trading disciplines.</span></b></li></ul><b><span style="background-color: yellow; color: red; font-size: large;">1. Make consistent pips daily</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Here the word 'consistent' is defined as ; To be specific trading planner ' Means to be selective or to become conservative while choosing any trading session. Every trading session is defined by its own market liquidity volatility. May vary from different time frames every day.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">2. Maintain Daily Pips</span></b><br /><b><span style="background-color: yellow; color: blue; font-size: large;"><br /></span></b><center></center><b><span style="font-size: large;">If you Invest for example : $5000&nbsp;</span></b><br /><b><span style="font-size: large;">You must set Your risk management strategy for security purpose. Maintaining daily profit in terms of pips is a different part. Just start understanding investment in % against levaradge on daily or weekly basis as per your intraday or delivery module.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="background-color: yellow; color: purple;"><span style="font-size: large;"><b>3. Repeat&nbsp;Trading&nbsp;</b></span><span style="font-size: large;"><b>Disciples</b></span></span><br /><b><span style="font-size: large;"><br /></span></b><span style="font-size: large;"><b>Once you make successful recovery of break even cost within the amount&nbsp;what you invested. Repeat same style of your experience trading on next multiple trading account ; subsequently it will double your profit unexpectedly.&nbsp;</b></span><br /><div class="post-title-container" style="background-color: white; box-sizing: border-box; color: #374147; font-family: &quot;open sans&quot;, helvetica, arial, sans-serif; font-style: normal; letter-spacing: normal; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;"></div><span style="font-size: small;"><b><br /></b></span><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div><span style="font-size: small;"><b></b></span></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-46492466479482010512017-10-29T23:24:00.000-07:002019-09-08T10:21:52.653-07:00Online currency trading live rates.<div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><center></center><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-jpkydkixf6g/XKmoMZN5r9I/AAAAAAAAAFc/aPWuV_BPHNI_Uu3TyYDpv8gb4DxunX3wQCPcBGAYYCw/s1600/Trading-National-Review-Image-copy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="665" data-original-width="1024" height="414" src="https://2.bp.blogspot.com/-jpkydkixf6g/XKmoMZN5r9I/AAAAAAAAAFc/aPWuV_BPHNI_Uu3TyYDpv8gb4DxunX3wQCPcBGAYYCw/s640/Trading-National-Review-Image-copy.jpg" width="640" /></a></div><br /><b><span style="background-color: yellow; color: red; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif; font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif; font-size: large;">CROSS RATES LIVE...</span></b><br /><br /><style type="text/css">.tg {border-collapse:collapse;border-spacing:0;margin:0px auto;} .tg td{font-family:Arial, sans-serif;font-size:14px;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;} .tg th{font-family:Arial, sans-serif;font-size:14px;font-weight:normal;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;} .tg .tg-yw4l{vertical-align:top} </style><iframe allowtransparency="true" frameborder="0" height="500px" marginheight="0" marginwidth="0" src="https://in.investingwidgets.com/live-currency-cross-rates?theme=darkTheme&amp;pairs=1,3,2,4,7,5,8,6,9,10,49,11,13,16,47,51,58,50,53,15,12,52,48,55,54" width="100%"></iframe><br /><br /><table class="tg"> <tbody><tr> <th class="tg-031e"><span style="color: red; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;"><b>ACHIEVING CONSISTENCY: SIMPLE STEPS EVERY TRADER CAN TAKE !!!</b></span><br /><span style="color: #0b5394; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;">posted by Kuldeep Nikam on November 01, 2013</span><br /><span style="font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;"><br /></span><span style="font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;">Achieving consistent results is the largest challenge any trader faces on the road to becoming professional grade. Consistency in this context is not measured by profits, because even when a trader does everything according to plan, he might still lose money. Consistency is measured by how traders conduct their business, control their emotions, and manage their accounts. Is your trading organized and efficiently executed, or do you change strategies every week, hoping you have found a better mouse trap? Having nearly finished this book, you now understand how I trade the currency market, but whether you’ll be able to do anything with this knowledge is up to you...</span><span style="color: #0b5394; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;"><b><a href="http://www.forextradingarena.com/2013/11/achieving-consistency-simple-steps_1.html">Read More</a></b></span></th> <th class="tg-yw4l"><span style="color: red; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;"><b>HOW TO KILL THE ODDS OF TRADING FOREX ?</b></span><br /><span style="color: #0b5394; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;">posted by Kuldeep Nikam on October 21, 2013</span><br /><span style="font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;"><br /></span><span style="font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;">It is one of the hardest jobs in the world to make big money. And trading forex is not one of the easiest ways – despite what many new traders believe. Many traders fail, and they empty their trading accounts before they learn how to exploit the forex market to their advantage. Although there are also traders who are successful in forex trading, their numbers are small compared to the majority of losers. Many times, traders are not aware that they have the power and might to shift the odds to their favour, that they can dramatically increase their chances of success if they want to...</span><span style="color: #0b5394; font-family: &quot;georgia&quot; , &quot;times new roman&quot; , serif;"><b><a href="http://www.forextradingarena.com/2013/10/how-to-kill-odds-of-trading-forex_21.html">Read More</a></b></span></th> </tr></tbody></table><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-59366294605867122572017-10-28T06:28:00.000-07:002019-09-08T10:21:52.670-07:00How To Create Best chart trading strategies in forex market...1<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="background-color: white; color: red; font-size: large;">HOW TO USE&nbsp; MACD INDICATOR TO SPOT CHANGES ?</span></b><br /><br /><b><span style="color: blue; font-size: large;">What Does MACD Do?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">One thing that the <a href="https://metatraderfour.blogspot.com/2014/03/money-making-questions.html"><span style="color: purple;">FOREX market</span></a> does have in common with other markets is that you will start to see trends that occur as the result of anything from changes within a particular country’s economy to behavioral changes with investors, such as them becoming more optimistic or pessimistic about buying a particular currency. However, the tricky part is figuring out a way to spot the trend before it actually happens, so you are one of the first to either buy or sell the currency, which means you will be the one making the greatest amount of money possible based on how much you have invested.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">MACD stands for <span style="color: red;">Moving Average Convergence Divergence</span>, and it is essentially designed to show you how the currency has averaged out over a given period of time. Rather than just averaging a bunch of numbers together over a given time frame, say three months, it actually shows you how much the average has changed at different intervals during the larger time frame. This allows you to get a much better, and more realistic, outlook regarding when the right time to buy and sell might be.</span></b><br /><br /><b><span style="color: purple; font-size: large;">Components of a MACD Chart</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-ghr_qUcjBpA/WfSEleRQHuI/AAAAAAAAXoQ/OzSLLTsQtFMHv81WXI8eKlL4z0mRO3E9QCEwYBhgL/s1600/download%2B%25281%2529-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="The MACD charts looks confusing to many investors, but it actually uses three simple components, which are expressed in numbers. The first number expresses the number of periods that are used to calculate the faster moving average. The second number expresses the number of periods that are used to calculate the slower moving average. " border="0" data-original-height="359" data-original-width="800" height="286" src="https://1.bp.blogspot.com/-ghr_qUcjBpA/WfSEleRQHuI/AAAAAAAAXoQ/OzSLLTsQtFMHv81WXI8eKlL4z0mRO3E9QCEwYBhgL/s640/download%2B%25281%2529-min.jpg" title="" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The MACD charts looks confusing to many investors, but it actually uses three simple components, which are expressed in numbers. The first number expresses the number of periods that are used to calculate the faster moving average. The second number expresses the number of periods that are used to calculate the slower <a href="http://www.forextradingarena.com/2013/11/easy-way-to-determine-forex-trend_8.html"><span style="background-color: yellow; color: red;">moving average</span></a>. The third number, as you may have guessed based on the pattern, is used to calculate the difference in average between the first and second numbers. Typically, the first number, the faster moving average, will have a default setting of 12 periods. The second number will typically have a default setting of 26 periods. The third, and final, number will typically be set to 9 periods on default. These periods are usually expressed in days, so you would be looking at the moving average over 12 days, 26 days and 9 days respectively.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: magenta; font-size: large;">Using MACD to Trade</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-Oby8mwJT4s4/WfSEmBP90pI/AAAAAAAAXoc/pyi6e3UKXOkP7CXTNRTndpc3xSsL-GmtwCEwYBhgL/s1600/vpt-div3a-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="The MACD charts looks confusing to many investors, but it actually uses three simple components, which are expressed in numbers. The first number expresses the number of periods that are used to calculate the faster moving average. The second number expresses the number of periods that are used to calculate the slower moving average. " border="0" data-original-height="360" data-original-width="480" height="480" src="https://4.bp.blogspot.com/-Oby8mwJT4s4/WfSEmBP90pI/AAAAAAAAXoc/pyi6e3UKXOkP7CXTNRTndpc3xSsL-GmtwCEwYBhgL/s640/vpt-div3a-min.jpg" title="" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Now that you know more about the overall concept of MACD, you are likely wondering how you could actually use the data to better your odds of success in the FOREX market. To begin with, you should know that it is important to know look at how the currency’s value changes over different time intervals, the 12, 26 and 9-day periods previously mentioned, rather than just looking at the changes over a less-specific time frame. You will also be able to see proof that the faster moving average will change in value much faster than the slower moving average. This fact will cause the faster and slower to crossover. When this occurs, it will indicate the end of a current trend, but when the fast begins to pull back on top of the slower moving average, it will indicate the beginning of a new trend. If you can figure out the pattern, you will be able to get a great idea regarding when the best time to buy and sell is, and you will be ahead of the other investors. What does this mean for you? Higher profits and lessened odds of losing money in the market, but it takes time to get it right.</span></b><br /><br /><b><span style="font-size: large;">There are several indicators that you can use to look for these kinds of trends in the FOREX market, but many investors like the fact that the MACD hones in on three different moving averages opposed to looking at general data for a period of time. This is a formula that takes a while to figure out, and it does not guarantee success, but it is certainly worth looking into. We wish you the best of luck with all your ventures in the FOREX market, and hope that you give this indicator a shot to see just how effective it can be.</span></b><br /><br /><b><span style="background-color: white; color: blue; font-size: large;">DIVERGENCE FOREX TRADING: IT’S ALL ABOUT TRENDS AND TIMING</span></b><br /><br /><b><span style="font-size: large;">Unlike traditional investments where you are essentially loaning money to a business or <span style="background-color: yellow; color: red;"><a href="http://live.forextradingarena.com/search/label/Bond">government entity (bonds)</a></span> or where you are investing in a company (stocks), the FOREX market is a little more complex. You do not have as many resources to tell you what to invest in, and you cannot simply invest in companies that do business in an industry that is speculated to take off extremely fast in the next few years, which would obviously bring you a higher return. But, FOREX does reward you with even higher potential returns than virtually any other type of investment, but you have to figure out a strategy that has been proven effective, or you will likely drop out of the market due to a high level of frustration. Today, we will look at a great <a href="http://www.forextradingarena.com/2013/11/trading-forex-in-tight-position_4.html"><span style="background-color: yellow; color: blue;">FOREX strategy</span></a>, which is commonly referred to as divergence trading.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">What is Divergence?</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-PTCaaN0uB_4/WfSElR7ThZI/AAAAAAAAXog/r0ICrdrJCNIDGo_FrNbRHvQB6yCYDiKWgCEwYBhgL/s1600/USDCAD50Renko24_06_2012-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="The MACD charts looks confusing to many investors, but it actually uses three simple components, which are expressed in numbers. The first number expresses the number of periods that are used to calculate the faster moving average. The second number expresses the number of periods that are used to calculate the slower moving average. " border="0" data-original-height="361" data-original-width="672" height="342" src="https://1.bp.blogspot.com/-PTCaaN0uB_4/WfSElR7ThZI/AAAAAAAAXog/r0ICrdrJCNIDGo_FrNbRHvQB6yCYDiKWgCEwYBhgL/s640/USDCAD50Renko24_06_2012-min.jpg" title="" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Divergence trading comes from the root word divergence, which essentially means changing directions. So, when you are dealing with the FOREX market, which obviously involves buying up currency and selling it, hopefully, for a profit, you have to be able to spot a change in direction. This means that not only do you need to research trends regarding what effects prices within the market, but you also need to be able to spot these occurrences that cause changes in price before they actually occur. Doing so will allow you to buy as close to the lowest price point possible while also selling as close to the highest possible point as possible.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">Types of Divergence</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There are also two types of divergence, which are known as regular and hidden divergence. Regular divergence is essentially when a trend appears to be changing-whether that means the price trend will oscillate (turn) to raise or lower the current prices in the near future . The other type of divergence is commonly referred to as hidden divergence. Hidden divergence essentially shows that a trend is going to continue- whether that means that prices will continue to climb or if they will keep dropping. Both of these can be charted using trend lines.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: purple; font-size: large;">Divergence Indicators</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Now that you understand what divergence is and what the two forms are, you need to understand how to find divergence indicators. There are three types of indicators commonly used, which are known as <a href="http://www.forextradingarena.com/2013/10/secrets-of-fx-news-straddling_30.html"><span style="background-color: yellow; color: blue;">RSI (Relative Strength Index)</span></a>, MACD (Moving Average Convergence Divergence) and Stochastic. RSI tells you as the investor which currencies are either overbought or oversold, which, as common sense would tell you, indicates when the best time to buy and sell is. MACD informs you of the moving average of a given currency, which is essentially how the currency’s price is averaging out over a specific period of time during the current trend. We will discuss these trend indicators more in depth in a different article.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">Benefits of Divergence Trading in FOREX</span></b><br /><br /><b><span style="font-size: large;">If you read the articles on using Elliott Waves, trend lines or support and resistant lines, you have a fairly decent idea on what a FOREX trading chart should look like. This will, in turn, help you to better understand the benefits of using divergence trading during your investing career in the FOREX market. The first benefit of divergence trading is that you will be better able to spot the lowest of lows, which means you will know when the currency is about to reach the price level that is best for buying (near the support). Another benefit is that you will also know when to sell as the price nears the highest of highs, which is essentially the resistance point. But, the greatest benefit of all is that you will have the added confidence of being able to see these trends occur over-and-over again, so you will know deep down that what you are witnessing is not simply a case of beginner's&nbsp;luck.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When it comes to buying and selling in the FOREX market, you will quickly find that there are several different strategies used by investors, and the divergence strategy happens to be just one of them. This strategy definitely works, but you may find that a different strategy ends up working out better for you personally, so do not hesitate to try out a few different strategies. The nice thing about the divergence strategy, however, is that it really allows you to narrow down your focus to spot changes or continuations of trends versus just looking at trends in general.</span></b><br /><br /><b><span style="background-color: white; color: purple; font-size: large;">HOW TO MAXIMIZE BENEFITS USING FIBONACCI IN FOREX TRADING?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When it comes to Forex trading, numerous tools are used to research the same and predict market trends. Whether you are using a computer or paper to calculate, the Fibonacci lines or <a href="http://www.forextradingarena.com/2013/10/consider-long-term-trading-trading-with_31.html"><span style="background-color: yellow; color: red;">Fibonacci</span></a> retracements come handy. These are useful Forex tools that actually help you gauge the market and make moves in order to earn profit.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-VjXRr0uKovM/WfSEletehgI/AAAAAAAAXog/El4iyvzp_zEQmMF5HUjG4gDIUJmoC3QMgCEwYBhgL/s1600/maxresdefault-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="When it comes to Forex trading, numerous tools are used to research the same and predict market trends. Whether you are using a computer or paper to calculate, the Fibonacci lines or Fibonacci retracements come handy. These are useful Forex tools that actually help you gauge the market and make moves in order to earn profit." border="0" data-original-height="358" data-original-width="482" height="474" src="https://2.bp.blogspot.com/-VjXRr0uKovM/WfSEletehgI/AAAAAAAAXog/El4iyvzp_zEQmMF5HUjG4gDIUJmoC3QMgCEwYBhgL/s640/maxresdefault-min.jpg" title="" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In the Forex market, there are many moves like reverse, <span style="background-color: yellow;"><a href="http://www.forextradingarena.com/2014/01/how-to-achieve-90-accuracy-in_10.html"><span style="color: magenta;">resistance and support</span></a>.</span> The Fibonacci lines help both the newbie as well as the experienced trader in finding a foot in the forex market and earn profits. These are simple calculation methods that give you an in depth understanding of the market and what to expect out of it.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">These methods are generally used throughout the trading hours to help you determine when to enter, reverse your move or exit the forex market. The best way to maximize and benefit using Fibonacci in Forex trading is by using the calculations to reaffirm that the moves you are making are aptly timed.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">A Lot Can Be Done With Fibonacci</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Fibonacci is actually a famous mathematical sequence. Here, the first 2 numbers in the series always adds up to the third number. The series, if formulated in a proper manner, would help you to predict many trends, whether in the forex market or otherwise. One example of a Fibonacci sequence is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. After the calculations are made, the results are expressed in percentage form. That not all! For easy understanding, comprehensive and intensive charts are also drawn up to depict the Fibonacci series in the best possible manner. These charts are an eye opener for the forex traders. Easy to understand and implement, the traders can understand if the moves that they are making is in the right direction or not.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The best aspect of the Fibonacci series is that they can be used by one and all. Moreover, the fundamentals of the calculation also remain the same, so you can keep on using it to derive status for various moves. In short, the same method can be used time and again to calculate different aspects that will come handy in the Forex market while trading.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Fibonacci series and lines are a great way to boost your confidence in the forex market and help you to take the right steps in the forex trading world. Use them with care and see the difference for yourself.</span></b><br /><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-69071464445387701142016-05-06T07:44:00.000-07:002019-09-08T10:21:52.681-07:00How To command over PRICE GAP. The Right Way towards trading accuracy !<div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><br /><b><span style="background-color: yellow; color: blue; font-size: large;">GAP : Financial term</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The amount of a financing need for which provision has to be made. For example.&nbsp; XYZ company might need $10 million to purchase and equip new plant facility.&nbsp; It arranges a mortgage loan of say...&nbsp; $5 million secures equipment financing of $2 million and obtain new equity of $1 million. That leaves a gap of $2 million for which it seeks gap financing. Such a financing may be available from state and local governments concerned with promoting economic development.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-uLjfMo4dXdE/WfP6HSJPnEI/AAAAAAAAXcg/WJBRl7CnUvYs2mQsG8rpnvkrBxxEpFjUACLcBGAs/s1600/Mr-Euro-not-interested-in-Greece-greek-news-on-forex-dance-floor-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="361" data-original-width="480" height="480" src="https://1.bp.blogspot.com/-uLjfMo4dXdE/WfP6HSJPnEI/AAAAAAAAXcg/WJBRl7CnUvYs2mQsG8rpnvkrBxxEpFjUACLcBGAs/s640/Mr-Euro-not-interested-in-Greece-greek-news-on-forex-dance-floor-min.png" width="640" /></a></div><br /><b><span style="background-color: yellow; font-size: large;"><span style="color: purple;">Securities </span>:&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Securities industry term used to describe price movement of forex.&nbsp; When the day trading range of a currency pair does not overlap the next day causing range or gap,&nbsp; in which no trade has occurred.&nbsp; This usually takes a place because of some extraordinary positive or negative <a href="http://www.forextradingarena.com/2013/10/secrets-of-fx-news-straddling_30.html"><span style="background-color: yellow; color: red;">news</span></a> about forex.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: magenta; font-size: large;">PRICE GAP</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Forex price jumps from last trading range without overlapping.&nbsp; During market hours, major data hits the chart in aggressive mode considered as significant movements by <a href="http://www.forextradingarena.com/2018/09/what-is-markets-sentiment.html"><span style="color: red;">technical analysis</span></a> such a gaps are know as <span style="color: blue;">oversold positions</span>.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-cyFguXRRQfs/WfP5pFEXIUI/AAAAAAAAXcc/SiZYFJPWCF8ZxXpeKlVmFpEoYEma-f_rgCEwYBhgL/s1600/maxresdefault-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="640" height="360" src="https://3.bp.blogspot.com/-cyFguXRRQfs/WfP5pFEXIUI/AAAAAAAAXcc/SiZYFJPWCF8ZxXpeKlVmFpEoYEma-f_rgCEwYBhgL/s640/maxresdefault-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Mainly price gap considered by oversold and overbought positioning. Forex market that has experienced unexpectedly sharp price decline according to some major news of technical analysis it is for an immense price rise.&nbsp; There are no sellers remaining,&nbsp; the price will rise and will continue as an <span style="color: red;">OVERBOUGHT</span> as it is reversed to price drop called <span style="color: blue;">CORRECTION</span> by technical analysts. When market leads to overbought. Remained few buyers to one side, chart starts loosing strong trend and holds a position to support or moves further.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">GAP opening price of a forex chart is significantly higher or lower than previous days closing price.&nbsp; For example.&nbsp; ABC company was the subject of a $70 takeover bid after the market closed with it shares trading at $50, it share price might open Monday morning at $65. There would, therefore, a gap between the closing price of $50 and an opening price of $65. The same phenomenon can occur on the downside is a company reports disappointing earnings or takeover bid falls through.</span></b><br /><br /><b><span style="background-color: yellow; color: red; font-size: large;">How to deal with GAP in trading hours. ?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">Don’t....</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In any trading session especially <span style="color: blue;">AMERICAN</span> sessions, we have to consider trading range as per limit up and limit down factors.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-NsZgSPi-jPQ/WfP6Umif91I/AAAAAAAAXck/rD88sanfk30GcnbCKhVfTdnR29iV0iu0ACLcBGAs/s1600/Small-cap-trading-plan-price-gaps-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="349" data-original-width="640" height="348" src="https://1.bp.blogspot.com/-NsZgSPi-jPQ/WfP6Umif91I/AAAAAAAAXck/rD88sanfk30GcnbCKhVfTdnR29iV0iu0ACLcBGAs/s640/Small-cap-trading-plan-price-gaps-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">We strongly recommend for <span style="color: blue;">SUSPENDED TRADING</span> means the temporary halt in a particular security in order to prevent loses from major news announcements.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In forex currency trading there is no such an advance notice receiving method like stock from listed companies. Therefore, forex trader must halt in order to stabilize equity gets affected by news development.</span></b><br /><br /><b><span style="background-color: yellow; color: purple; font-size: large;">What can we do....</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Those who are willing to get benefited from the gap down and gap up of chart behaviour must consider weekly trading strategies.&nbsp; Accuracy for hitting take profit of 30 pip is 95%.</span></b><br /><b><span style="font-size: large;"></span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">1. Understand limit up / limit down of your <span style="color: red;">trading account</span></span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">2. Do not engage your equity between market hours i. e.&nbsp; From Monday to Friday.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">3. Learn advanced <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2014/01/how-to-achieve-90-accuracy-in_10.html">chart reading strategies</a></span></span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">4.&nbsp; Create a projection of your real forex trading account.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">5. Before start up...&nbsp; Please practice in demo first.</span></b></span></b></li></ul><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-48721442725126673422015-06-03T01:34:00.000-07:002019-09-08T10:21:52.657-07:00Beginners Guide : You Must Need to Know About Forex Chart Timeframes...!<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;"><span style="color: red;">Most accurate timeframes for highly volatile </span><span style="color: blue;">forex currency market</span></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Highly volatile fluctuations of currency market attracts Speculators to Forex market as a currencies are highly sensitive with changing interest rates and political happenings. All this factors including Economic calender data leads to high volatility of currency pairs. Traders who can speculate in right direction can take advantage of future price movements.</span></b><br /><br /><b><span style="background-color: yellow; color: blue; font-size: large;">Actual required time-frames for trading :</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Before you enter in position to hit a trade, you must understand first-when you are going to exit the market.&nbsp; Any trader cannot hold position indefinitely. So here trad-able time-frame will decide how long you wish to hold a position for certain time.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This is a personal decision which has to be made by the trader depending on his or her risk against equity deposited to analyse market.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">A general rule:&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="color: red; font-size: large;">Smaller the time frame you trade, more time is needed to be devoted to monitor market.</span></b></blockquote><b><span style="font-size: large;">Someone who day trades tends to be more in touch with the market swing and going on with the market as a positions are opened.&nbsp; In the other hand position trader does not have to monitor the market so intensively.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Same way... Longer time frame used in trading, the more risk is involved if and only if the lot size of trades mismatched against deposit. This simple because market had more time to move against them.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: red; font-size: large;">Using trends in terms of time measurements for understanding positioning of trades.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"></div><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">1.primary trend</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-X4uTReicmkk/WfQEzz0wsHI/AAAAAAAAXd0/GocEBr3Cgykpx_e_taJ0G7P36GDkCBonQCLcBGAs/s1600/pa395en-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="493" height="466" src="https://2.bp.blogspot.com/-X4uTReicmkk/WfQEzz0wsHI/AAAAAAAAXd0/GocEBr3Cgykpx_e_taJ0G7P36GDkCBonQCLcBGAs/s640/pa395en-min.png" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A primary trend sustains the longest period of time.&nbsp; Its time measurements can be from 6 months to 1 year.&nbsp; This major trend we can spot easily on bigger time frame charts such as a daily,weekly or monthly time-frames. Long term trader can trade according to advance chart reading strategies following fundamental factors of current market Scenarios.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: magenta; font-size: large;">2. Intermediate trend</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-wFhJ4vzFJN8/WfQE71mlVHI/AAAAAAAAXd4/pkKQfFaspx44no4u6gQc0Irzbsq3w7xFgCLcBGAs/s1600/toby_20140214_1-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="357" data-original-width="608" height="374" src="https://1.bp.blogspot.com/-wFhJ4vzFJN8/WfQE71mlVHI/AAAAAAAAXd4/pkKQfFaspx44no4u6gQc0Irzbsq3w7xFgCLcBGAs/s640/toby_20140214_1-min.png" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">As compare to primary trend, there will be counter cyclical trend of time duration from 1 month to 6 months. Trader can hold a position for several weeks in terms of profit.&nbsp; This types of trend can be admitted by using H4, D1 and W1 time-frames. Knowing intermediate trend is very important for trader for positioning trades for limited time-frame.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">3.Short term trend</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-skRPbtU0T98/WfQFBlPhKYI/AAAAAAAAXeA/fgVIF0q-WPwFtTO4NgSDs7No-VVz3aM4QCLcBGAs/s1600/the-happy-trader-eurusd-17102014-new-short-trend-up-trend-linejpg-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="672" height="342" src="https://4.bp.blogspot.com/-skRPbtU0T98/WfQFBlPhKYI/AAAAAAAAXeA/fgVIF0q-WPwFtTO4NgSDs7No-VVz3aM4QCLcBGAs/s640/the-happy-trader-eurusd-17102014-new-short-trend-up-trend-linejpg-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Short term trend can last for a few days to as along as a month. Short term trend leads with H4,D1 mainly.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Best market conditions for using bigger time-frames.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">Range-bound time-frame</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Its a common knowledge that financial market spends most of their time for bouncing back and ranges between support and resistance prices.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Range-bound time slot can be very profitable when market is ranging. Two contact points of <a href="http://www.forextradingarena.com/2013/10/learn-forex-support-resistance_11.html"><span style="background-color: yellow; color: blue;">support and resistance</span></a> can be measured at the end of week with accurate pattern readings with bigger time frames. Closing market hours is the weakest time slot trades and that can be encashed with no obstacles with any data...&nbsp; Here just we need to determine <a href="http://www.forextradingarena.com/2016/05/gap-up-and-gap-down-in-forex-chart_6.html"><span style="background-color: yellow; color: purple;">gap up and gap down</span></a> by doing accurate chart reading.</span></b><br /><div class="post-title-container" style="background-color: white; box-sizing: border-box; color: #374147; font-family: &quot;open sans&quot;, helvetica, arial, sans-serif; font-size: 14px;"></div><br /><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-57654636741905318302014-03-26T03:56:00.000-07:002019-09-08T10:21:52.663-07:00Ultimate Guide : How bank participates in forex market...!<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;">1. WHY WE NEED FOREIGN EXCHANGE</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Almost every nation has its own national currency or monetary unit its dollar, its peso, its rupees used for making and receiving payments within its own borders. But foreign currencies are usually needed for payments across national borders. Thus, in any nation whose residents conduct business abroad or engage in financial transactions with persons in other countries, there must be a mechanism for providing access to foreign currencies, so that payments can be made in a form acceptable to foreigners. In other words, there is need for “foreign exchange” transactions exchanges of one currency for another.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-eaqGueMK9vo/WfQNNH2xjhI/AAAAAAAAXeo/PrzYgr8bnr4ZeISGngsIsda-XF5rhiOTACLcBGAs/s1600/bbb-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="359" data-original-width="539" height="426" src="https://4.bp.blogspot.com/-eaqGueMK9vo/WfQNNH2xjhI/AAAAAAAAXeo/PrzYgr8bnr4ZeISGngsIsda-XF5rhiOTACLcBGAs/s640/bbb-min.jpg" width="640" /></a></div><br /><b><span style="background-color: yellow; color: blue; font-size: large;">2. PAYMENT AND SETTLEMENT SYSTEMS</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Just as each nation has its own national currency, so also does each nation have its own payment and settlement system that is, its own set of institutions and legally acceptable arrangements for making payments and executing financial transactions within that country,using its national currency. “Payment” is the transmission of an instruction to transfer value that results from a transaction in the economy, and “settlement” is the final and unconditional transfer of the value specified in a payment instruction. Thus, if a customer pays a department store bill by check, “payment” occurs when the check is placed in the hands of the department store, and “settlement” occurs when the check clears and the department store’s bank account is credited. If the customer pays the bill with cash,payment and settlement are simultaneous.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When two traders enter a deal and agree to undertake a foreign exchange transaction, they are agreeing on the terms of a currency exchange and committing the resources of their respective institutions to that agreement. But the execution of that exchange the settlement does not take place until later.</span></b><br /><br /><b><span style="background-color: yellow; color: purple; font-size: large;">3.PAYMENTS VIA FEDWIRE AND CHIPS</span></b><br /><br /><b><span style="font-size: large;">When a payment is executed over Fedwire, a regional Federal Reserve Bank debits on its books the account of the sending bank and credits the account of the receiving bank, so that there is an immediate transfer from the sending bank and delivery to the receiving bank of “central bank money” (i.e., a deposit claim on that Federal Reserve Bank).A Fedwire payment is “settled”when the receiving bank has its deposit account at the Fed credited with the funds or is notified of the payment. Fedwire is a “realtime gross settlements” (or RTGS) system To control risk on Fedwire, the Federal Reserve imposes charges on participants for intra-day (daylight) overdrafts beyond a permissible allowance.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In contrast to Fedwire, payments processed over CHIPS are finally “settled,” not individually during the course of the day, but collectively at the end of the business day, after the net debit or credit position of each&nbsp; CHIPS participant (against all other CHIPS participants) has been determined. Final settlement of CHIPS obligations occurs by Fedwire transfer (delivery of “central bank money”). Settlement is initiated when those CHIPS participants in a net debit position for the day’s CHIPS activity pay their day’s obligations. If a commercial bank that is scheduled to receive CHIPS payments makes funds available to its customers before CHIPS settlement occurs at the end of the day, that commercial bank is exposed to some risk of loss if CHIPS settlement cannot occur.To ensure that settlement does, in fact, occur, the New York Clearing House has put in place a system of net debit caps and a loss sharing arrangement backed up by collateral as a risk control mechanism.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: magenta; font-size: large;">4. CENTRAL BANKS</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-HLrwAYmvFec/WfQNNZ_wQ4I/AAAAAAAAXes/qG0KXab8uNgsFmc2FmEKy7d1aXWJX0swgCEwYBhgL/s1600/forex-market-participants-min.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="357" data-original-width="585" height="390" src="https://1.bp.blogspot.com/-HLrwAYmvFec/WfQNNZ_wQ4I/AAAAAAAAXes/qG0KXab8uNgsFmc2FmEKy7d1aXWJX0swgCEwYBhgL/s640/forex-market-participants-min.png" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">All central banks participate in their nations’foreign exchange markets to some degree, and their operations can be of great importance to role&nbsp;of the Federal Reserve in the foreign exchange market is discussed more in previous articles. Intervention operations designed to influence foreign exchange market conditions or the exchange rate represent a critically important aspect of central banks’ foreign exchange transactions. However, the intervention practices of individual central banks differ greatly with respect to objectives, approaches, amounts, and tactics.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Unlike the days of the Bretton Woods par value system, nations are now free, within broad rules of the IMF, to choose the exchange rate regime they feel best suits their needs. The United States and many other developed and developing nations have chosen an varied in many ways—whether and when to intervene, in which currencies and geographic markets, in what amounts, aggressively or less so, openly or discreetly, and in concert with other central banks or not. The resolution of these and other issues depends on an assessment of market conditions and the objectives of the intervention.United States, operating under the same broad policy guideline over a number of years, has experienced both periods of relatively heavy intervention and periods of minimal activity.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Foreign exchange market intervention is not the only reason central banks buy and sell foreign currencies.Many central banks serve as their government’s principal international banker, and handle most, and in some cases all, foreign exchange transactions for the government as well as for other public sector enterprises, such as the post office, electric power utilities, and nationalized airline or railroad. Consequently, even without its own intervention operations, a central bank may be operating in the foreign exchange market in those markets. But central banks differ, not only in the extent of their participation, but also in the manner and purposes of their involvement.</span></b><br /><br /><b><span style="font-size: large;">The“<span style="color: red;">independently floating</span>” regime, providing for a considerable degree of flexibility in their exchange rates. But a large number of countries continue to peg their currencies, either to the U.S. dollar or some other currency, or to a currency basket or a currency composite, or have chosen some other regime to limit or manage flexibility of the home currency.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The choice of exchange rate regime determines the basic framework within which each central bank carries out its intervention activities. The techniques employed by a central bank to maintain an exchange rate that is pegged or closely tied to another currency are straightforward and have limited room for maneuver or change. But for the United States and others with more flexible regimes, the approach to intervention can be order to acquire or dispose of foreign currencies for some government procurement or investment purpose. A central bank also may seek to accumulate, reallocate among currencies, or reduce its foreign exchange reserve balances. It may be in the market as agent for another central bank, using that other central bank’s resources to assist it in influencing that nation’s exchange rate. Alternatively, it might be assisting another central bank in acquiring foreign currencies needed for the other central bank’s activities or business expenditures.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Thus, for example, the Foreign Exchange Desk of the Federal Reserve Bank of New York engages in intervention operations only occasionally. But it usually is in the market every day, buying and selling foreign currencies, often in modest amounts, for its “customers” (i.e., other central banks, some U.S. agencies, and international institutions). This “customer”business provides a useful service to other central banks or agencies,while also enabling the Desk to stay in close touchwith the market for the currencies being traded</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: red; font-size: large;">5. LINKAGES BETWEEN MAIN FOREIGN EXCHANGE INSTRUMENTS IN BOTH OTC AND EXCHANGE-TRADED MARKETS</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="color: blue;">=&gt; SPOT</span> (settled two days after deal date, or T+2) =&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Benchmark price of a unit of the base currency expressed in a variable amount of the terms currency.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: red;"><span style="font-size: large;"><b>=&gt; PRE-SPOT:</b></span><b><span style="font-size: large;">&nbsp;</span></b></span><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">VALUE TOMORROW (settled one day after deal date, or T+1) = Price based on spot rate adjusted for the value for one day of the interest rate differential between the two currencies. (Higher interest rate currency trades at a premium from spot.)</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: purple; font-size: large;"><b>=&gt; PRO-SPOT:&nbsp;</b></span><br /><div><br /></div><b><span style="font-size: large;">CASH (settled on deal date, or T+0) = Price based on spot rate adjusted for the value for two days of the interest rate differential between the two currencies. (Higher interest rate currency trades at a premium from spot.)</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="color: red;">=&gt; OUTRIGHT FORWARD</span> =&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Price based on spot rate adjusted for the value of the interest rate differential between the two currencies for the number of days of the forward. (Higher interest rate currency trades at a forward discount from spot.)</span></b><br /><b><span style="color: blue; font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="color: blue;">=&gt; FX SWAP</span> =&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">One spot transaction plus one outright forward transaction for a given amount of the base currency, going in opposite directions, or else two outright forward transactions for a given amount of the</span></b><br /><b><span style="font-size: large;">base currency, with different maturity dates, going in opposite directions.</span></b><br /><b><span style="color: purple; font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="color: purple;">=&gt; CURRENCY FUTURES</span> =&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Conceptually, a series of outright forwards, one covering each period from one day’s marking to market and cash settlement to the next.</span></b><br /><b><span style="color: magenta; font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="color: magenta;">=&gt; CURRENCY SWAP</span> =&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">An exchange of principal in two different currencies at the beginning of the contract (sometimes omitted) and a reexchange of same amount at the end; plus an exchange of two streams of interest payments covering each interest payment period, which is conceptually a series of outright forwards, one covering each interest payment period.</span></b><br /><b><span style="color: red; font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="color: red;">=&gt; CURRENCY OPTION</span> =&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A one-way bet on the forward rate, at a price (premium) reflecting the market’s forecast of the volatility of that rate. A synthetic forward position can be produced from a combination of options, and a package of options can be replicated by taking apart a forward.</span></b><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-48677192243073443572014-03-24T00:57:00.000-07:002019-09-08T10:21:52.655-07:00Things You Need To Know Before : how to trade foreign currency online ?<div dir="ltr" style="text-align: left;" trbidi="on"><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">1. <a href="http://www.forextradingarena.com/2013/10/how-to-kill-odds-of-trading-forex_21.html"><span style="color: red;">What is Forex Trading?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b></span><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-ojybAsH1dtI/WfQPzx7iD7I/AAAAAAAAXfI/hG5U06StmboDtF6u3L75VfI8HuWAU5tmQCLcBGAs/s1600/summary-keeping-a-trading-journal-min.png" imageanchor="1" style="background-color: white; margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="361" data-original-width="530" height="434" src="https://2.bp.blogspot.com/-ojybAsH1dtI/WfQPzx7iD7I/AAAAAAAAXfI/hG5U06StmboDtF6u3L75VfI8HuWAU5tmQCLcBGAs/s640/summary-keeping-a-trading-journal-min.png" width="640" /></a></div><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Forex is the foreign currency trading exchange market. It is also known as the FX and the Foreign Exchange Market. With more than three trillion dollars traded every day, this lucrative market trades the currencies of the world.</span></b></span><br /><span style="background-color: white;"><br /></span><b><span style="background-color: white; color: blue; font-size: large;">2. <a href="http://www.forextradingarena.com/2018/09/how-capital-market-patterns-emerges.html"><span style="color: blue;">How does Forex Trading work?</span></a></span></b><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Forex trading involves trading one currency against the other. An example of this would include purchase of Canadian money using the American Dollar or using the Yen to purchase a Euro. The most often traded currency pairs are: EUR/JPY, CAD/USD, EUR/USD, USD/JPY, et al.</span></b></span><br /><br /><span style="background-color: white;"><b><span style="color: purple; font-size: large;">3. <a href="http://www.forextradingarena.com/2013/10/how-to-get-revenge-on-market_22.html"><span style="color: purple;">Is Forex Trading risky ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">All trading is risky. The risk is tempered by the amount of money that you invest into the exchange market. However, there are many techniques and tools that a person can use to limit the risk, but even the best laid plans can cause significant risk and loss. A good way to experience the Foreign Exchange Market without the risk is to use a demo account for an extended period of time before dabbling in the real exchange market. This will allow you to see the risk without actually risking your money.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: magenta; font-size: large;">4. <a href="http://live.forextradingarena.com/2018/08/forex-and-currency-rates_31.html"><span style="color: magenta;">When is the Forex Market Open ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The Foreign Exchange Market is one of the few markets that is actually open twenty four hours a day. The market is open all over the world and remains active the entire time. This is because there is no central trading location and all trades are conducted between two or more parties via the telephone or computer. It would definitely be useful for you to know Sydney is the first location where it begins and continues further to Tokyo, followed by London and then New York.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;"><span style="color: red;">5. How does Forex Trading compare to </span><a href="http://live.forextradingarena.com/search/label/Stock%20Live"><span style="color: blue;">stocks</span></a><span style="color: red;"> or </span><span style="color: purple;"><a href="http://live.forextradingarena.com/search/label/Fund%20Live">mutual funds</a></span><span style="color: red;"> ?</span></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There is a lot of similarity between stocks and forex. However, the only difference is that forex normally involves trading for a shorter term, in comparison to other markets. Forex traders often avert leaving their positions open even when they are not active in the market, which charges them a "Rollover Fee." Also, forex market is more vast than the stock market, so it becomes more difficult to master the trade in the latter.&nbsp;</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">6. <a href="http://www.forextradingarena.com/2013/10/what-is-carry-trade_29.html"><span style="color: blue;">How long are Forex positions maintained ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This usually depends on the preferences and strategy of the traders. If we go by the statistics, more than 80% of the forex trades last within a week. And more than 40% last for up to two days only. Usually, positions are closed by the forex traders when they have their lucrative targets in relation to that trade. Stop Loss is initiated when a trader reaches the maximum loss he/she can afford. Or, they make available a new position if the trader is interested in the allocation of their funds.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: purple; font-size: large;">7. <a href="http://www.forextradingarena.com/2013/11/easy-way-to-determine-forex-trend_8.html"><span style="color: purple;">How often are Forex trades made ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">As there are no commissions that brokers charge when a new position is opened and since the trades are not made in a centralized location and are made between individuals, the exact numbers are impossible to determine. A recent survey put to Forex traders shows that each one of them usually changes positions around 10-20 times everyday.</span></b></span><br /><b><span style="background-color: white; font-size: large;">Starting in the Forex Market</span></b><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: magenta; font-size: large;">8. <a href="http://www.forextradingarena.com/2014/01/how-to-achieve-90-accuracy-in_10.html"><span style="color: magenta;">What Do I need to Start Forex Trading ?</span></a></span></b></span><br /><br /><span style="background-color: white;"><b><span style="font-size: large;">There are no licenses or other requirements to start trading. It is possible for someone to sign onto a Forex trading site and begin with nothing but luck and some money. However, it is advisable that a person starts out by learning as much as possible about Forex strategies, the factors that can change the Forex and the most important, a reliable broker. There is a lot to be gained from the Forex Exchange Market but there is also a lot that can be lost if a person attempts to trade while not being properly prepared.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">9. <a href="http://www.forextradingarena.com/2013/10/how-to-trade-against-crowd_28.html"><span style="color: red;">What is the best way to learn Forex ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It is essential that a person researches the Forex market before attempting to engage in trading. A great way to start is to read our articles section, gain some knowledge and start off. Another way out is to engage in a simulation program. This will allow you to practice different strategies without risking any of your money.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">Currencies of the Forex Market</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">10. <a href="http://www.forextradingarena.com/2018/09/how-to-understand-central-banks-and.html"><span style="color: blue;">How are the prices of the currencies determined ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There are many different factors that change the price of the currency. Political stability, economic stability and ability as well as the interest rates and inflation rates are all different factors that can affect the Foreign Exchange Market. A country can change their own rate by buying out or selling some of their stocks in order to increase or decrease their standings. There is no single factor that can affect the currencies.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: purple; font-size: large;">11. <a href="http://www.forextradingarena.com/2013/11/forex-rebates-and-spreads_7.html"><span style="color: purple;">What do terms like "Bid", "Spread" and "Rollover" mean ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There are many different terms that are used in the Foreign Exchange Market. These terms have specific definitions and uses. To find the right use and definition for a term used in the Forex, please Google for Forex Glossary online and you will have your answer.</span></b></span><br /><br /><span style="background-color: white;"><b><span style="color: magenta; font-size: large;">12. <a href="http://www.forextradingarena.com/2013/10/how-to-use-limit-orders-to-increase_4.html"><span style="color: magenta;">How can I manage my risks in the most efficient way ?</span></a></span></b></span><br /><span style="background-color: white;"><br /></span><b><span style="background-color: white; font-size: large;">There will always be risks when trading in the Foreign Exchange Market. The only way to prevent any loss is to not trade. When looking to limit the losses, it is important to begin by putting a stop loss on any account that is failing. It is also important to follow your strategy and know when to walk away. There are many articles that will help you to determine the best way to manage your risks efficiently.</span></b><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">13. <a href="http://www.forextradingarena.com/2018/09/what-is-markets-sentiment.html"><span style="color: red;">Is Forex trading lucrative ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There is always the potential to make a large amount of money on the Foreign Exchange Market. It can be very lucrative to those brokers who make it a point to follow their strategy, do their homework and research each move before making it. This is not an easy or surefire way to make money though, and there is the risk of losing big just as there is the potential to score big.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">14. <a href="http://www.forextradingarena.com/2014/01/do-don-for-forex-trading-must-read_15.html"><span style="color: blue;">Is Forex an expensive habit ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There are often no commissions and limited fees with Forex trading. This does not mean that it cannot be expensive. It is up to the investor how much money he or she is willing to invest in trading. If you feel that you are being pressured into investing more than you are comfortable with, it may be in your best interests to look into a new broker. If you feel that you are losing control of your habit and that it is becoming almost an addiction, you might want to look into counseling for gambling.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: purple; font-size: large;">15. <a href="http://www.forextradingarena.com/2013/10/how-to-create-winning-trading-strategies_14.html"><span style="color: purple;">What is the best Forex strategy to use ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There is no one strategy that is most likely to provide you with riches. The strategies to use change on a continual basis depending upon what other people are doing and what the governments are doing. If there was a single strategy to use, everyone would be using it and making money hand over fist. The best strategy to use is to do your research, attempt to predict what the market will do and act upon that. Know when to pull out and stick to a strategy until it has ran its completion. Changing strategies will most likely result in losses.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">16. <a href="http://www.forextradingarena.com/2013/11/your-all-in-one-guide-to-choose-forex_5.html"><span style="color: red;">How to choose a Forex Broker ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There are many different brokers that a person can pick between. Most of these brokers work for large corporations that specialize in trading. First check the different companies and pick a company that you are comfortable with. If you do not know of any of the companies, you can look at the reviews for the different companies and brokers to find the right broker for you. Do not be afraid to ask for references that you can speak with. It is your money, and you have the right and responsibility to verify the legitimacy of any individual who claims to want to invest it.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: magenta; font-size: large;">17. <a href="http://www.forextradingarena.com/2013/12/regulatory-authorities-that-helps_2.html"><span style="color: magenta;">What features should I look for in a Forex broker ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b></span><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-4YNM3MLWmyU/WfQPzA9vt8I/AAAAAAAAXfQ/diOl4gv0xc4GqPKXOcjE2XbcQ2HNRMiewCEwYBhgL/s1600/features3-min.png" imageanchor="1" style="background-color: white; margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="714" height="322" src="https://3.bp.blogspot.com/-4YNM3MLWmyU/WfQPzA9vt8I/AAAAAAAAXfQ/diOl4gv0xc4GqPKXOcjE2XbcQ2HNRMiewCEwYBhgL/s640/features3-min.png" width="640" /></a></div><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The Forex broker that you pick should be upfront and honest at all times. There will be times when he has to inform you of bad news and he should be able to do so without difficulty. He should also be very detailed oriented while not losing sight of the big picture. The Forex broker should also be easy to reach and have a high return rate. Read the reviews on the broker and the company before investing with them. This will help you to know what to look for in a broker and if the broker is trustworthy.</span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">18. <a href="http://www.forextradingarena.com/2013/11/your-all-in-one-guide-to-choose-forex_5.html"><span style="color: blue;">How do I know if a Forex broker is a scam ?</span></a></span></b></span><br /><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b></span><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-m49DkQfB2G4/WfQPzPIOhHI/AAAAAAAAXfQ/KQhYDJMn-0Aki4aeVLPXmYl5dxFyD0mJQCEwYBhgL/s1600/download-min.png" imageanchor="1" style="background-color: white; margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="372" height="618" src="https://4.bp.blogspot.com/-m49DkQfB2G4/WfQPzPIOhHI/AAAAAAAAXfQ/KQhYDJMn-0Aki4aeVLPXmYl5dxFyD0mJQCEwYBhgL/s640/download-min.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"></div><span style="background-color: white;"><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There are many people in the world that would rather scam you out of your money than make money on their own. When researching the broker, look for minor inconsistencies and problems with their website. Also deal with brokers from your own country rather than ones that are in other countries. Finally, ask for references to people you can talk to. Anyone can write a review and lie, but many people have a difficult time lying over the phone to someone.</span></b></span><br /><span style="background-color: white;"><br /></span><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b style="background-color: white;">GET FRESH CONTENT DELIVERED BY&nbsp;E-MAIL</b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><span style="background-color: white;"><input type="submit" value="Subscribe" /><br /></span><b style="background-color: white;"><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-82386300894666909962014-01-15T06:04:00.000-08:002019-09-08T10:21:52.692-07:00Mistakes You Don’t Want To Make in Online Forex Trading.. must read !<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: blue; font-size: large;">Every time a trader has an adventurous Forex trade with lots of ups and downs, he makes a resolution to be careful the next time and practice a cautious approach. But with the Forex fever in his blood, he is rarely able to keep his promise.&nbsp;</span></b><br /><span style="background-color: white; font-size: large;"><b><span style="color: blue;"><br /></span></b><b><span style="color: blue;">These bad habits have been ingrained into him since he was a toddler in the game and he finds it impossible to get rid of them. These bad Forex trading habits can be broadly classified into three heads as discussed below.</span></b></span><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-UUZsebVn6vA/WfQbS4eEHKI/AAAAAAAAXgo/Fpe3vUGBKi8Jd8h_20iM7nXygTnhFPalACLcBGAs/s1600/COMPETENCE%2BIN%2BTRADING-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="359" data-original-width="528" height="434" src="https://4.bp.blogspot.com/-UUZsebVn6vA/WfQbS4eEHKI/AAAAAAAAXgo/Fpe3vUGBKi8Jd8h_20iM7nXygTnhFPalACLcBGAs/s640/COMPETENCE%2BIN%2BTRADING-min.jpg" width="640" /></a></div><br /><span style="color: red; font-size: large;"><b style="background-color: #f3f3f3;">1. OVERTRADING –</b></span><br /><div><br /></div><b><span style="font-size: large;">&nbsp;This is the worst habit that many currency traders have. If you do not have this habit then it is probable that you are a millionaire with the profits that you have made in the market and can now afford to sit back and relax. Or perhaps, you are using the automated system with the stops at both ends.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When a trader places one trade after another indiscriminately and too aggressively without any discipline, it is known as overtrading. When you are chasing the profits, you tend to overtrade. This is an expensive habit and you will find yourself up at all hours of the night and day. The best way to break this habit is to develop a game plan. Having a strategy will discipline you and help you actually earn profits.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: blue; font-size: large;"><b style="background-color: #f3f3f3;">2. OVER LEVERAGING –</b></span><br /><div><br /></div><b><span style="font-size: large;">Not many people are aware of what this term means. Everyone has heard of it but thinks that they do not have this bad habit. Over leveraging occurs when you put all your equity in one single trade. When you are glued to you computer screen following every single movement of the trade, you keep on adding money to your trade, till you finally over leverage. Trading requires a discipline and the ability to move away from a trade that is frustrating and come to it when you are in a calmer state of mind. There a three ways to break this bad habit – by having a strategy for trading, placing stops and disciplining yourself to walk away after placing the stops at both the ends.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: purple; font-size: large;"><b style="background-color: #f3f3f3;">3. NOT HAVING A TRADING STRATEGY –</b></span><br /><div><br /></div><b><span style="font-size: large;">&nbsp;</span></b><b><span style="font-size: large;">This is the mistake that all traders, even seasoned ones, make. Not having a strategy or a game plan leads to overtrading and over leveraging resulting in placing more equity on a single trade or opening too many trades. Isn’t it difficult to drive if you do not know the way? Research the market carefully and study the charts before developing your <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2017/10/chart-trading-strategies1_28.html">trading strategy</a></span>.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The best way to trade is to place a trade and then place the stops at both the ends. Now, let the stops take care of your trading limits. You will not indulge in your bad habits and be a better trader for that.</span></b><br /><br /><span style="color: red; font-size: large;"><b>TRADING EXPERIENCE CHECKLIST&nbsp;</b></span><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-ASzIn9ZzRso/WfQbTHwSX3I/AAAAAAAAXgs/sqio3_XdVHsmHDRG-pm2QIyBYbQGpbUWACEwYBhgL/s1600/indexChecklist-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="359" data-original-width="481" height="476" src="https://1.bp.blogspot.com/-ASzIn9ZzRso/WfQbTHwSX3I/AAAAAAAAXgs/sqio3_XdVHsmHDRG-pm2QIyBYbQGpbUWACEwYBhgL/s640/indexChecklist-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">1.Have you tried trading different <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2015/06/how-to-understand-forex-chart-timeframes_3.html">time frames</a></span> (intraday, swing, long term) on an ongoing basis?&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</span></b><br /><b><span style="font-size: large;">2.Have you attempted to trade different markets (<span style="background-color: yellow; color: purple;"><a href="http://live.forextradingarena.com/2018/08/indices-live.html">stocks, futures, commodities</a></span>) on an ongoing basis?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">3.Have you experimented with trading different styles (<span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2018/09/how-capital-market-patterns-emerges.html">technical, tape reading, quantitative, mechanical</a></span>) on an ongoing basis?&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</span></b><br /><b><span style="font-size: large;">4.Have you been trading on a regular basis for a year or longer?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">5.Have you made major adjustments in your trading approach after becoming dissatisfied with your results?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">6.Do you have a trading method that you consistently follow?</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">DEFINING COMPETENCE IN TRADING</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">I have a very simple definition of competence in trading and an equally simple definition of expertise.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">• A competent trader is one who consistently covers his or her trading</span></b><br /><b><span style="font-size: large;">costs.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">• An expert trader is one who makes a consistent and acceptable living&nbsp;</span></b><b><span style="font-size: large;">from his or her trading.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">It is impossible to limit one’s definition of trading competence and expertise to the possession of particular abilities, personality traits, and skills.I know many competent traders of <span style="background-color: yellow; color: red;"><a href="http://live.forextradingarena.com/2018/08/real-time-stock-index-futures.html">stock index futures</a></span> who are not competent in other markets, and I know many competent position traders who could never cover the costs of scalping. Defining competence and expertise by the consistent attainment of&nbsp;</span></b><b><span style="font-size: large;">results provides the only yardstick by which we can gauge whether participants realize nonrandom edges in the marketplace.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The inexperienced trader looks at a trade as a 50/50 proposition: Either the market will move in one’s favor or it won’t. Even if we generously assume that traders will be equally good at harvesting profits and absorbing losses—something that does not come easily to human nature, as behavioral</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">finance researchers have found—trading still is not an even bet. For traders to truly cover costs, they must recover the expenses of a real-time data feed, trading software, and other tools purchased to aid trading. Add to this hardware expenses for screen traders, the cost of an adequate connection</span></b><br /><b><span style="font-size: large;">to the markets, and the expenditures associated with maintaining redundant systems (in case of equipment or connection failure), and this overhead can add up quickly.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">To cover costs, a trader actually must be at least modestly and consistently profitable. This requires appreciable skills at execution, risk management, and the reading of market patterns. While covering one’s overhead is not an exciting goal, it is a necessary one along the path to greater success.</span></b><br /><b><span style="font-size: large;">When a restaurant opens, it can stay in business only by recouping its fixed overhead: the costs of equipment, real estate, personnel, food, taxes, and utilities.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">If it can do that in a reasonable period of time, it can then afford to wait for marketing and menu tweaking to build clientele. Your trading business will need to achieve competence long before it attains expertise. As with the restaurant, breaking even will buy you the time to survive your learning curve and reach that point where expertise can earn you a decent return on your capital.</span></b><br /><br /><b><span style="background-color: #f3f3f3; color: red; font-size: large;">WHY PEOPLE LOSE IN FOREX ?</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-KkRYFRKdznU/WfR04jx6w0I/AAAAAAAAXnU/ccGA-1Xyqdk5E0GmbbvX_PdinsqAixaygCLcBGAs/s1600/oooo-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="517" height="444" src="https://2.bp.blogspot.com/-KkRYFRKdznU/WfR04jx6w0I/AAAAAAAAXnU/ccGA-1Xyqdk5E0GmbbvX_PdinsqAixaygCLcBGAs/s640/oooo-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A difficult challenge facing a trader,and particularly those trading e-forex, is finding perspective.Achieving that in markets with regular hours is hard enough, but with forex, where prices are moving 24 hours a day, seven days a week, it is exceptionally laborious.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When inundated with constantly shifting market information, it is hard to separate yourself from the action and avoid personal responses to the market. The market doesn't care about your feelings.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Traders have heard it in many different ways — the only thing you can control is when you buy and when you sell. In response to that, it is easier to know how not to trade then how to trade. Along those lines, here are some tips on avoiding common pitfalls when trading forex.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">1) Don’t read the news —&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">analyze the news. Man times, seemingly straightforward news releases from government agencies are really public relation vehicles to advance a particular point of view or policy. Such “news,” in the forex markets more than any other, is used as a tool to affect the investment psychology of the crowd.</span></b><br /><b><span style="font-size: large;">Such media manipulation is not inherently a negative. Governments and traders try to do that all the time. The new forex trader must realize that it is important to read the news to assess the message behind the drums.</span></b><br /><br /><b><span style="font-size: large;">GETTING THE POINT&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Market analysis should be kept simple, particularly in a fast-moving environment such as forex trading. Point-and-figure charts are an elegant tool that provides much of the market information a trader needs.</span></b><br /><b><span style="font-size: large;">Source: Quote Spread</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">NEWS YOU (DON’T) USE</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Often, news that might seem definitively bullish to someone new to the forex market might be as bearish as you can get.</span></b><br /><b><span style="font-size: large;">For example, Japan’s Prime Minister Masajuro Shiokowa was quoted in a news report on Dec. 13 that “an excessive depreciation of the yen should be avoided. But we should make efforts and give consideration to guide the yen lower if it is relatively overvalued.”</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When a government official is asking, in effect, if traders would please slow down the weakening of his currency, then we must wonder whether there is fear the opposite will happen. In this case, that was the outcome as on Dec. 14 <span style="background-color: yellow; color: blue;"><a href="http://charts.forextradingarena.com/2018/09/usd-jpy-advanced-chart.html">the dollar</a>&nbsp;</span></span></b><b><span style="font-size: large;"><span style="background-color: yellow; color: blue;"><a href="http://charts.forextradingarena.com/2018/09/usd-jpy-advanced-chart.html">vs. the yen</a></span> surged to a three-year high. The Prime Minister’s statement acted as a contrarian indicator. This is what “fade the news” means. Often, a bank analyst or trader will be quoted with a public statement on a bank forecast of a currency’s move.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When this occurs, they are signaling they hope it will go that way. Why put your reputation on the line, saying the currency is going to break out, if you don’t benefit by that move? A cynical position, yes, but traders in the forex markets always need to be on guard. Read the news with the perspective that, in forex, how the event is reported can be as&nbsp;</span></b><b><span style="font-size: large;">important as the event itself.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">2) Don’t trade surges.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;"><span style="background-color: yellow; color: purple;"><a href="http://www.forextradingarena.com/2018/09/bonds-markets-vigilantes.html">A price surge</a></span> is a signature of panic or surprise. In these events, professional traders take cover and see what happens. The retail trader also should let the&nbsp;</span></b><b><span style="font-size: large;">market digest such shocks.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Trading during an announcement or right before, or amid some turmoil, minimizes the odds of predicting the probable direction. Technical indicators during surge periods will</span></b><br /><b><span style="font-size: large;">be distorted. You should wait for a confirmation of the new direction and remember that price action will tend to revert to pre-surge ranges providing nothing&nbsp;</span></b><b><span style="font-size: large;">fundamental has occurred.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">An example is the Nov. 12 crash of the airplane in Queens, N.Y. Instantly, all currencies reacted. But within a short period of time, the surge that reflected the tendency to&nbsp;</span></b><b><span style="font-size: large;">panic retraced.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: purple; font-size: large;">3) Simple is better.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The desire to achieve great gains in forex trading can drive us to keep adding indicators in a never-ending quest for the impossible dream.</span></b><br /><div><br /><b><span style="background-color: #f3f3f3; color: red; font-size: large;">THE TEN RULES FOR FOREX</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">Avoiding mistakes in forex trading.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-H7S2U8WnzCY/WfR2lfEdn6I/AAAAAAAAXng/l-6kTtYr9S8CNd626dLd8GjdqrIo6RpdgCLcBGAs/s1600/n-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="114" data-original-width="443" height="164" src="https://2.bp.blogspot.com/-H7S2U8WnzCY/WfR2lfEdn6I/AAAAAAAAXng/l-6kTtYr9S8CNd626dLd8GjdqrIo6RpdgCLcBGAs/s640/n-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">I list here ten rules that I think are important for trading forex.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: purple; font-size: large;"><b style="background-color: yellow;">DO'S</b></span><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">1. When trying out a new trading strategy, always test it in a demo account, or with</span></b><br /><b><span style="font-size: large;">a small amount of money, before you commit more money to it.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">2. Always keep a record of each of your trades, with details of: why you got in,</span></b><br /><b><span style="font-size: large;">how you got out and why it turned out the way it did.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">3. Have a personalized trading plan and update it as you learn from the market.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">4. If you are unsure of a trade, stay out. It is better to miss an opportunity than to&nbsp;</span></b><b><span style="font-size: large;">have a loss.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">5. When trading, keep up-to-date with both the <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2018/09/what-is-fundamental-analysis.html">fundamentals</a></span> and <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2018/09/what-is-markets-sentiment.html">technicals</a></span></span></b><br /><b><span style="font-size: large;">affecting the market. A trader in the dark is a trader in the red.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: magenta; font-size: large;"><b style="background-color: yellow;">DON’TS</b></span><br /><div><br /></div><b><span style="font-size: large;">1. Don’t trade with money you can’t afford to lose! It will affect you emotionally,</span></b><br /><b><span style="font-size: large;">and you will most likely lose it to irrational trading.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">2. Don’t follow someone else’s trading advice blindly. Always know why you are</span></b><br /><b><span style="font-size: large;">getting into a trade, and how you are going to get out of it.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">3. Don’t be concerned about being right. Just be concerned about being profitable.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">4. Don’t over-leverage. Chances are that your account will be decimated before</span></b><br /><b><span style="font-size: large;">you can recoup your losses and go into profit.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">5. Don’t <span style="background-color: yellow; color: purple;"><a href="http://www.forextradingarena.com/2013/10/how-to-get-revenge-on-market_22.html">revenge-trade</a></span> the market. Vent your frustrations elsewhere after a loss.</span></b><br /><div class="post-title-container" style="background-color: white; box-sizing: border-box; color: #374147; font-family: &quot;open sans&quot;, helvetica, arial, sans-serif; font-size: 14px;"></div><br /><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-13945253692764665012014-01-10T23:05:00.000-08:002019-09-08T10:21:52.611-07:00How To Seriously achieve 90% accuracy in professional chart reading.<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; font-size: large;"><span style="color: red;">Trading Forex like a professional is easier than one would expect. The </span><span style="color: blue;"><a href="http://www.forextradingarena.com/2018/09/best-markets-sentiment-trading-set-ups.html">professionals</a></span><span style="color: red;"> take their time, use their patience and skills to make money. They do their research and make educated trades based upon the long term expectancies of the </span><span style="color: purple;"><a href="https://live.forextradingarena.com/">Foreign Exchange Market</a></span><span style="color: red;">. They focus on what could be lost rather than what can be gained and avoid the high risk moves that could go either way very quickly.</span></span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-gcm8_p1cElE/WfS2nXwjTjI/AAAAAAAAXp0/D3jtbWKXppA05nLOY4FTmAQ_mMmkVBQMgCLcBGAs/s1600/6J6VxMeXA9_1442782374086-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="480" height="480" src="https://4.bp.blogspot.com/-gcm8_p1cElE/WfS2nXwjTjI/AAAAAAAAXp0/D3jtbWKXppA05nLOY4FTmAQ_mMmkVBQMgCLcBGAs/s640/6J6VxMeXA9_1442782374086-min.jpg" width="640" /></a></div><br /><b><span style="font-size: large;">The professional traders operate in direct contrast to how many of the novice traders operate. Most novice traders use short term charts and graphs that make it difficult to determine the actual market trends. In addition, most novice traders are focused upon the potential profit, rather than the potential loss. This spurs them onto making riskier trades and potentially losing a lot of money.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The novice trader often does not have the patience to develop and follow through with the strategies that the professional traders have. This lack of patience causes the novice trader to enter into and pull out of trades faster than the professional trader. The novice trader may also find that they are doing more trades than the professional trader. This is not an indication that they are doing better than the professional, but simply an indication that they are working harder than the professional.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A great way to learn to trade like to professionals is to learn and study like the professionals. Take your time and read the different articles about trading. Take your time and practice with the different demo programs that enable you to see the long term effects of trading without risking your money. These demos are often free to use and are offered by many of the larger trading firms.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Another way to learn to trade like the professionals is to take courses in trading. There are many different websites that offer trading courses and seminars. These seminars and courses are designed to help not only the professional but the novice trader learn how to be a better trader. These seminars help you to understand how the market works, the different factors that affect the market and the how to predict what the market will do.</span></b><br /><br /><span style="color: blue; font-size: large;"><b style="background-color: white;">HIGH-PROBABLE ENTRY CONDITIONS</b></span><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The following checklist summarizes important criteria for identifying high-probable entry conditions. Of course, it is not exclusive, but the questions illustrate the need to integrate multiple methods of confirming trades while applying price break,point and figure charting. A useful exercise is to answer these questions whenever scanning and considering a trade opportunity.</span></b><br /><br /><b><span style="background-color: yellow; color: blue; font-size: large;">A. Trend Conditions</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;">1. Is the price above or below the day trend line in the intended direction of the trade?</span></b></li><li><b><span style="font-size: large;">2. Is the price above or below the fifty-day moving average?</span></b></li><li><b><span style="font-size: large;">3. Is the fifty-day moving average in agreement with the trend direction?</span></b></li><li><b><span style="font-size: large;">4. Is the twenty-one–day moving average crossed above or below the fifty-day <span style="background-color: yellow; color: red;"><a href="http://www.forextradingarena.com/2013/11/easy-way-to-determine-forex-trend_8.html">moving average</a></span></span></b></li></ul><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">B. Reversal Conditions</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">1. Is the price at a day <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2013/10/learn-forex-support-resistance_11.html">support or resistance</a></span>?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">2. Is the price at a four-hour support or resistance?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">3. Is the price at a fifteen-minute support or resistance?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">4. Is the price moving above or below a Bollinger band and then returning to its previous direction?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">5. Is the price probing the Bollinger band and seeming to slide down on it, or hug it, if it is going up?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">6. Do you spot a Doji candle at a support line or at a resistance line?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">7. Is the price near a projected cycle turning point?</span></b></span></b></li></ul><br /><b><span style="background-color: yellow; color: red; font-size: large;">C. Fibonacci Retracement Lines</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">1. If price is at the key 61.8 percent <span style="background-color: yellow; color: purple;"><a href="http://www.forextradingarena.com/2018/09/importance-of-resistance-and-support.html">Fibonacci retracement</a></span> line, is it at a trend changing point?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">2. Has the price penetrated the 61.8 percent Fibonacci retracement line?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">3. Has the price penetrated the 61.8 percent Fibonacci retracement line and returned back?</span></b></span></b></li></ul><br /><b><span style="background-color: yellow; color: blue; font-size: large;">D. Momentum Conditions</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">1. Has an inner trend line been generated?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">2. Has the stochastic crossover occurred?</span></b></span></b></li></ul><br /><b><span style="font-size: large;">E. Risk Management Conditions for Entry</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;">1. Is the stop loss less than 2 percent of the total cash in account?</span></b></li><li><b><span style="font-size: large;">2. Is the stop loss risk calibrated with the win/loss ratio?</span></b></li></ul><br /><span style="color: red; font-size: large;"><b style="background-color: #f3f3f3;">REVERSAL DISTANCES: A KEY METRIC</b></span><br /><br /><b><span style="font-size: large;">When a price break chart reversal occurs, except for isolated instances of fl ip-fl ops, a new sequence of black or white boxes is set in motion. This happens, of course, because the countersentiment was usually strong enough to generate a reversal condition. Let’s consider some important questions that arise in relationship to the reversal event:</span></b><br /><b><span style="font-size: large;"><br /></span></b><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">➤ <span style="background-color: cyan; color: blue;"><a href="http://www.forextradingarena.com/2013/10/how-to-analyze-breakout-trading-patterns_25.html">How strong is the reversal?</a></span></span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">➤ Can the trader know?</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">➤ Does it matter?</span></b></span></b></li></ul><br /><b><span style="font-size: large;">These are important questions because if a trader knows how to derive some reliable answers, he will have the potential to generate very effective trading tactics.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: blue; font-size: large;">Here is how to do your own reversal distance analysis for price break charts:</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">1. Generate the time series of the prices.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">2. Locate the fi rst reversal block (in either direction).</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">3. Measure the low and the high of that block.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">4. Count the number of consecutive blocks (black or white) that appeared when a reversal occurred.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">5. Repeat the process for every sequence of lows and highs.</span></b></span></b></li></ul><br /><b><span style="font-size: large;">Trading in the Direction of the Trend after a Counterreversal Block</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;">This strategy entails the following five steps:</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">1. Select prevailing trend.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">2. Select entry time interval.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">3. Detect counterreversal.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">4. Place a buy stop order or a sell stop order.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">5. Identify an entry location.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">6. Let’s look at these steps in order.</span></b></span></b></li></ul><br /><div><b><span style="background-color: white; font-size: large;"><span style="color: red;">FACTORS CAUSED FOREIGN EXCHANGE VOLUME GROWTH </span><span style="color: blue;">( EQUALLY IMPORTANT )</span></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Foreign exchange trading is generally conducted in a decentralized manner, with the exceptions of currency futures and options. Foreign exchange has experienced spectacular growth in volume ever since currencies were allowed to float freely against each other. While the daily turnover in 1977 was U.S. $5 billion, it increased to U.S. $600 billion in 1987, reached the U.S. $1 trillion mark in September 1992, and stabilized at around $1,5 trillion by the year 2000. Main factors influence on this spectacular growth in volume are indicated below.</span></b><br /><b><span style="font-size: large;"><br /></span></b><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-TUhy7Yt8mro/WfS7eB6DRCI/AAAAAAAAXqI/veRi8xdQVToI0jMnr2YEaCtZYmzr-BtzgCLcBGAs/s1600/Factors-Caused-Foreign-Exchange-Volume-Growth-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="432" height="532" src="https://1.bp.blogspot.com/-TUhy7Yt8mro/WfS7eB6DRCI/AAAAAAAAXqI/veRi8xdQVToI0jMnr2YEaCtZYmzr-BtzgCLcBGAs/s640/Factors-Caused-Foreign-Exchange-Volume-Growth-min.jpg" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">For foreign exchange, currency volatility is a prime factor in the growth of volume. In fact, volatility is a sine qua non condition for trading. The only instruments that may be profitable under conditions of low volatility are currency options.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;"><a href="http://www.forextradingarena.com/2018/09/how-to-understand-central-banks-and.html">Interest Rate Volatility</a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Economic internationalization generated a significant impact on interest rates as well. Economics became much more interrelated and that exacerbated the need to change interest rates faster. Interest rates are generally changed in order to adjust the growth in the economy, and interest rate differentials have a substantial impact on exchange rates.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: red; font-size: large;"><a href="http://www.forextradingarena.com/2013/10/what-are-best-forex-market-hours_10.html">Business Internationalization</a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In recent decades the business world the competition has intensified, triggering a worldwide hunt for more markets and cheaper raw materials and labor. The pace of economic internationalization picked up even more in the 1990s, due to the fall of Communism in Europe and to up-and-down economic</span></b><br /><b><span style="font-size: large;">and financial development in both Southeast Asia and South America. These changes have been positive toward foreign exchange, since more transactional layers were added.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;"><a href="http://www.forextradingarena.com/2018/09/bonds-markets-vigilantes.html">Increasing of Corporate Interest</a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">A successful performance of a product or service overseas may be pulled down from the profit point of view by adverse foreign exchange conditions and vice versa. An accurate handling of the foreign exchange may enhance the overall international performance of a product or service. Proper handling of foreign exchange generally adds substantially to the rate of return. Therefore, interest in foreign exchange has increased in the past decade. Many corporations are using currencies not only for hedging, but also for capitalizing on opportunities that exist solely in the currency markets.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: purple; font-size: large;"><a href="http://www.forextradingarena.com/2014/03/how-to-dominate-forex-currency-trading_22.html">Increasing of Traders Sophistication</a></span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Advances in technology, computer software, and telecommunications and increased experience have increased the level of traders' sophistication. This FOREX. On-line Manual For Successful Trading enhanced traders' confidence in their ability to both generate profits and properly handle the exchange risks. Therefore, trading sophistication led toward volume increase.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: purple; font-size: large;">Developments in Telecommunications</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">The introduction of automated dealing systems in the 1980s, of matching systems in the early 1990s, and of Internet trading in the late 1990s completely altered the way foreign exchange was conducted. The dealing systems are online computer systems that link banks on a one-to-one basis, while matching systems are electronic brokers. They are reliable and much faster, allowing traders to conduct more simultaneous trades. They are also safer, as traders are able to see the deals that they execute. The dealing systems had a major role in expanding the foreign exchange business due to their reliability, speed, and safety.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: red; font-size: large;">Computer and Programming development</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Computers play a significant role at many stages of conducting foreign exchange. In addition to the dealing systems, matching systems simultaneously connect all traders around the world, electronically duplicating the brokers' market. The new office systems provide full accounting coverage, ticket writing, back office processing, and risk management implementation at a fraction of their previous cost. Advanced software makes it possible to generate all types of charts, augment them with sophisticated technical studies, and put them at traders' fingertips on a continuous basis at a rather limited cost.</span></b><br /><div class="post-title-container" style="background-color: white; box-sizing: border-box; color: #374147; font-family: &quot;open sans&quot;, helvetica, arial, sans-serif; font-size: 14px;"></div><br /><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-19471721058468747982013-11-05T07:33:00.000-08:002019-09-08T10:21:52.622-07:00What No One Tells You About Your Forex Broker : Ultimate Guide<div dir="ltr" style="text-align: left;" trbidi="on"><br /><div dir="ltr" style="text-align: left;" trbidi="on"><script> (function() { var cx = '007991437970100915235:hmb7grvf2eg'; var gcse = document.createElement('script'); gcse.type = 'text/javascript'; gcse.async = true; gcse.src = (document.location.protocol == 'https:' ? 'https:' : 'http:') + '//www.google.com/cse/cse.js?cx=' + cx; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(gcse, s); })(); </script><span style="color: #d5a6bd; font-size: x-large;"><b><gcse:search></gcse:search></b></span><br /><div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="background-color: white; color: red; font-size: large;">When trading in the Forex market, apart from your own instinct, what you will also need is an able Forex broker for handling your funds and lending you precious analysis and suggestions. This guide aims at providing you a list of certain features that you will want to be aware of when it comes to your Forex broker.</span></b><br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-uSifeaEaSqI/WfQjDzDAWdI/AAAAAAAAXhc/4EytQFe611kzQXS_bSTX9Bg1Xug2-CtswCLcBGAs/s1600/dd-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="358" data-original-width="526" height="434" src="https://3.bp.blogspot.com/-uSifeaEaSqI/WfQjDzDAWdI/AAAAAAAAXhc/4EytQFe611kzQXS_bSTX9Bg1Xug2-CtswCLcBGAs/s640/dd-min.jpg" width="640" /></a></div><br /><br /><div class="separator" style="clear: both; text-align: center;"></div><span style="background-color: white; color: purple; font-size: large;"><b>Ease of use and flexibility in the trading interface, tools, and trading systems&nbsp;</b><b>Your broker should offer these minimum features :</b></span><br /><br /><span style="font-size: large;"><b>• Easy to use web interface.</b></span><br /><span style="font-size: large;"><b>• Mobile interface or proprietary mobile trading applications.</b></span><br /><span style="font-size: large;"><b>• Basic research tools.</b></span><br /><span style="font-size: large;"><b>• Forex education and suggested Forex trading systems.</b></span><br /><br /><span style="color: #274e13; font-size: x-large;"><b style="background-color: yellow;">Rapid order execution</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Orders must be rapidly filled with safeguards against large order gaps.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: #0b5394; font-size: x-large;"><b style="background-color: yellow;">Available practice accounts</b></span><br /><br /><span style="font-size: large;"><b>Before you start trading with your hard earned real money, sign up for practice accounts with your short list of brokers to try out the user interface and features. &nbsp;This is a great way to take your Forex broker for a test drive before you trust them with your hard earned money.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: #38761d; font-size: large;"><b style="background-color: white;">Simple registration process and flexible, low minimum funding options</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Registration should be rapid with minimal paperwork and wait time. Options should be available for either a mini-account or regular account, and different leverage options made available. Leverage is a necessity in the Forex market because the deviations in prices (the profit source) are just fractions of a cent.</b></span><br /><span style="font-size: large;"><b><br /></b></span><b><span style="background-color: white; color: blue; font-size: large;">Tip:</span><span style="background-color: white; color: red; font-size: large;"> If you have limited capital, make sure your broker offers high leverage. If capital is not a problem, any broker with a wide variety of leverage options should do.</span></b><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>We express Leverage as a ratio between the total capitals available to the actual capital. It is the total money amount a broker is willing to lend to you for purposes of trading. As an example, the ratio of 100:1 will mean that your broker is ready to lend to you $100 for every $1 of your actual capital. Numerous brokerages might offer a Leverage ratio of 250:1. A lower leverage represents reduced risk of margin calls, but also means lower returns on your money (and vice-versa).&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>If trading with limited capitals is your preferred way, you must make sure that your broker is offering a high leverage. If on the other hand, your capital performance is high, a broker offering a wide range of options for leverage should suffice. There are a variety of available options that will lets you tinker with the extent of risk you want to take. As an example, lower leverage (and thus a lower risk) might be preferable for extremely volatile (exotic) pairs of currency.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: #0b5394; font-size: large;"><b style="background-color: yellow;">Reliable customer support</b></span><br /><br /><b><span style="background-color: white; color: magenta; font-size: large;">The following minimal customer support features should be included;</span></b><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>• Detailed online FAQ’s and help.</b></span><br /><span style="font-size: large;"><b>• Live twenty four hour customer support via chat or telephone.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Apart from these evident features, you as a consumer should know and take good care to find out the following advanced features before subscribing to your choice of Forex broker:</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: blue; font-size: x-large;"><b style="background-color: yellow;"><a href="http://www.forextradingarena.com/2013/12/regulatory-authorities-that-helps_2.html">Regulation</a></b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>This might sound pretty bewildering but the reality is, most new traders are unaware of the numerous regulatory bodies which are available in the market. In case a Forex broker is what you are using, it must be regulated. Additionally, you must know which country it is regulated in. This is the most common thing almost all of us ignore. As a rule of thumb, you might want to be regulated by a country known for its business-friendly Forex policies.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>For example, the most obvious choice is to be regulated by Cyprus. This is due to the Cypriot authority’s more lax views on its laws governing Forex trades. By being regulated in Cyprus, one can claim that one is “regulated in a European Union country”, which in technical terms, is true.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>But almost every other user, get registered with Mexico as the regulating country by getting attracted by its lax policies on finances and Forex, but the reality is that you can be regarded as “regulated in the continent of North America” and as a result of that you will face the rigid policies that Canada or USA have.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: purple; font-size: x-large;"><b style="background-color: yellow;"><a href="http://www.forextradingarena.com/2013/11/forex-rebates-and-spreads_7.html">Low Spreads</a></b></span><br /><span style="font-size: large;"><b><br /></b></span><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-_Q_uN1UdKHc/WfQjDS2WiEI/AAAAAAAAXhU/rYDIsX_HEHoA2ssaaCfKzhuJoZ3k2D2jQCEwYBhgL/s1600/27426299-Concept-Illustration-of-Global-Forex-Trading-between-three-major-currencies-Indian-Rupee-Swiss-Franc-Stock-Vector-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="358" data-original-width="723" height="316" src="https://3.bp.blogspot.com/-_Q_uN1UdKHc/WfQjDS2WiEI/AAAAAAAAXhU/rYDIsX_HEHoA2ssaaCfKzhuJoZ3k2D2jQCEwYBhgL/s640/27426299-Concept-Illustration-of-Global-Forex-Trading-between-three-major-currencies-Indian-Rupee-Swiss-Franc-Stock-Vector-min.jpg" width="640" /></a></div><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Spreads, which are calculated in the unit "pips", which is the difference between the currency’s purchasing and selling prices at any time during the period of trading. Most Forex brokers use this difference to make money as there is no scheme of commission.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>While comparing Forex brokers, you will notice that the variety in spreads of Forex trading is similarly humongous as the variety in commissions for the stock market. Thus, the lower spread that you choose, the more money you will actually be saving.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: #674ea7; font-size: x-large;"><b style="background-color: yellow;">Pairs</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>All brokers don’t offer the exact same pairs of currencies. Some offer well over 100, but there can be others who will offer the 25 widespread currency pairs only. The most surprising occurrences in this case are CAD/JPY. Both the Canadian dollar and the Japanese yen being major currencies, many a traders mistakenly end up assuming that their cross pair will be on offer as well.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Every broker is different, and you will need a detailed review of all available currency trading pairs before finalising your purchase. The last thing you want to do is close the account after heavily paying for a Forex broker owing to the reason that they are not offering the currency pairs of your choice.</b></span><br /><br /><span style="color: blue; font-size: x-large;"><b style="background-color: yellow;"><a href="http://www.forextradingarena.com/2017/10/tools_30.html">Extensive Tools for Analysis and Research</a></b></span><br /><b><span style="font-size: x-large;"><br /></span></b><b><span style="background-color: white; color: #a64d79; font-size: large;">Before committing to any broker, be sure to request free trials to test different trading platforms.</span></b><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Almost all Forex brokers will offer a wide range of trading platforms in order to assist their clients - similarly like the brokers in stock markets. These platforms commonly feature charts, analysis tools, news in real-time and also customer care for their trading systems. Forex brokers also provide fundamental and technical commentaries, other research and economic calendars.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Here we are done with all that you need to make an informed decision for choosing a Forex broker for handling your funds in the currency market. But this guide is incomplete unless we have made you aware of the various Things to Avoid’ while choosing a Forex broker:</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: red; font-size: large;"><b style="background-color: white;">Sniping and Hunting</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Selling or buying prematurely near pre-set points - are unfair acts brokers usually commit in order to soar there profits. Obviously, there will be no broker who will admit committing these unfair practices, but a pre conceived notion that most brokers has practiced these acts is usually believed. Sadly enough, there is no full proof way of determining which brokers are resorting to these practices and which brokers are refraining.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>The only way of finding it out is by talking to other traders. No blacklist and/or organization are available who will report such activities. Talking to other traders in person along with visiting discussion forums online are the only ways for finding out who honest brokers and who are not.</b></span><br /><span style="color: #0b5394;"><span style="color: #0b5394; font-size: large;"><b><br /></b></span><span style="color: #674ea7; font-size: large;"><b style="background-color: white;">Strict Margin Rules</b></span></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>When you trade with money borrowed from your broker, it will have a say in the amount of risk you should take. This can be to the extent where your broker will buy and sell at its own will, which will turn out to be a detrimental clause for you as a trader. For example, you hold a margin account with your broker, when your position plummets before regaining the highs again.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Even if there is enough cash to manage the situation, some brokers might try to liquidate your margin account with them at such lows. This action of the broker will cost you a lot of money. Yet again, talking to other traders personally or visiting discussion forums online are the only ways of finding out who is an honest broker and who is not.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: #741b47; font-size: large;"><b style="background-color: white;">Now, The “Frills”</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>As a consumer it makes sense to look for and purchase / subscribe to a Forex broker which offers a lot of features and other benefits, but the catch in this process is, do you actually need all these features? Most of the ‘added features’ can be categorized as “frills” and you, as an informed consumer can take part in Forex trading without them. These features not only clutter the software interface making it more confusing, they also inflate the cost of subscription / purchase immensely.</b></span><br /><span style="font-size: large;"><b><br /></b></span><b><span style="background-color: white; color: #38761d; font-size: large;">AutoChartist</span></b><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Undoubtedly the biggest frill feature that is most abundantly found is the AutoChartist feature. This certain software randomly picks out technical trends from the chart, and will bring them to notice. It surely is an amazing idea. But then again, the reality is, using this software, is doing nothing constructive towards advancing your knowledge for Forex trading. And almost all of the trends that this feature will point out to you are easily identifiable by a beginner trader with basic instincts for analysis and trend spotting. It doesn’t make sense to pay for a feature that is there in-bred in you.</b></span><br /><span style="font-size: large;"><b><br /></b></span><blockquote class="tr_bq"><b><span style="background-color: white; color: #a64d79; font-size: large;">Unnecessary Features Giving Technical Patterns</span></b></blockquote><br /><span style="font-size: large;"><b>Another problem with this software is it frequently gives technical patterns which are plain and simple annoying. Such as, a pattern on the fifteen-minute period chart is nothing you should be bothered with. This will hardly influence the decision making of a trader who is dealing with something as medium / long term as Forex.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Thus, the feature does nothing more but adding to the clutter of the interface making navigation and comprehension a tasking endeavour. While it shows the pattern on the longer time period weekly charts as well, the fact is that it will show too many low key and unnecessary patterns because the software lacks filters to restrict some of these lesser important technical intricacies.</b></span><br /><span style="font-size: large;"><b><br /></b></span><b><span style="background-color: yellow; color: red; font-size: x-large;">Forums</span></b><br /><span style="font-size: large;"><b><br /></b></span><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-OyyeN0_nAOU/WfQjD9ZyaoI/AAAAAAAAXhg/y6SIzzGgnk4lI5Iz6qbHoxklZdC-jhvqQCEwYBhgL/s1600/ssss-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="385" height="598" src="https://3.bp.blogspot.com/-OyyeN0_nAOU/WfQjD9ZyaoI/AAAAAAAAXhg/y6SIzzGgnk4lI5Iz6qbHoxklZdC-jhvqQCEwYBhgL/s640/ssss-min.jpg" width="640" /></a></div><br /><span style="font-size: large;"><b>These are pure and fine wastage of time when it boils down to a Forex broker. Almost all of the chat on these forums that you might come across in these boards is comparable to the forums of a video game. Most of it is about people boasting about their exploits in the Forex trading market (not necessarily using the certain broker).&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>At most, you will face an array of unknown people who are trying to make you believe and spam you that the trading strategy that they have formulated is the best that there is, even though they don’t have the simplest idea of what they're up to. Worst comes worst, you will quit the forum after being heavily insulted or irritated at the trash talk that is going on. Thus, Forums, though (mostly) a free feature is an unnecessary one and as a consumer you should avoid being tempted into advertisements of Forex Brokers with “An Interactive and Constructive Forum”.</b></span><br /><br /><b><span style="background-color: yellow; color: #38761d; font-size: large;">Unskilled ‘Analysts’</span></b><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>While the basic analysis of data and trend spotting can be done by a beginner Forex trader worth his salt, there is no denying the need for a trained and qualified analyst when it comes to advanced and specialized analysis and inference drawing. Let’s face the fact, almost all of these Forex brokers have employed a half skilled analyst who lacks necessary knowledge of what they are intended to do.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Almost all of the well-qualified analysts prefer working with larger brokerage houses and consultancy firms like Bloomberg. So how can you, as a consumer, identify whether your funds are being handled by an under-skilled analyst or is it the real deal. Keep a look out for the time frames in which the analyst is operating.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>If most of his operation is in the short time frame, for example: five minutes, fifteen minutes or one hour, then all he is doing, is getting you to trade in a more frequent manner and get involved in speculative markets of Forex which is a sure fire favourite way of firms to make you part with your funds.</b></span><br /><span style="font-size: large;"><b><br /></b></span><blockquote class="tr_bq"><b><span style="background-color: yellow; color: red; font-size: large;">‘Real Time’ News Feed</span></b></blockquote><br /><span style="font-size: large;"><b>Any consumer can be heavily impressed by the fact that there Forex broker has promised them a news feed to Dow Jones and NASDAQ on their favourite RSS client. While such content is no doubt very informative and adds a professional feel to the whole matter, the fact that can’t be denied here is there is nothing much you can do by getting this news. Normally such news updates are delayed by a good thirty minutes by the time they turn up on your news feed and have already taken its toll on the market and prices.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>You as an individual trader or a small trading house can no way compete with the big brokerage firms who use Bloomberg terminals for all real time news update and analysis of their impacts. You will be better of concentrating on what should be your next move in the market rather than trying to analyse the news and predict impacts and trends.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Surely all of the provided frills are not harmful; but then also they are surely not why you want to subscribe to the services of the Forex broker. Most Forex brokers are more or less similar, and are offering the same package in different wrappings. Being honest, this industry is not innovative enough.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>If you focus on what is it that you truly, you will ensure that you are not paying through your nose for added redundant features that just add to your confusion and clutter in an already confusing Forex market.</b></span><br /><div style="text-align: center;"><br /></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-38864137860956344162013-11-04T05:00:00.000-08:002019-09-08T10:21:52.637-07:00Most Effective Ways To Trade forex in a tight position with simplicity ?<div dir="ltr" style="text-align: left;" trbidi="on"><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: white; color: red; font-size: large;">Unlike most other markets out there, Forex is a 24/5 operation - meaning that from Monday to Friday, you can trade at any time of the day or night. This is perfect if you are one of those people wanting complete flexibility as to the times you trade. However, it can also be a bit of a nightmare for those who are followers of the news.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Fundamental trading strategies (or news trading) is basically the basis on which people use the news to base their trading decisions. For example, any of the following events might trigger a trade if someone was carefully following the news.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: red; font-size: large;"><b>SURPRISE INTEREST RATE INCREASE OR DECREASE.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: blue; font-size: large;"><b>SURPRISE ECONOMIC DATA.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: magenta; font-size: large;"><b>NEWS THAT A CURRENCY IS BEING ARTIFICIALLY TAMPERED WITH BY AUTHORITIES.</b></span><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This is just a selection of the possible news stories which could turn a relaxed, off duty Forex trader in to a raging financial mogul in a matter of seconds.</span></b><br /><b><span style="font-size: large;"><br /></span></b><span style="color: red; font-size: large;"><b style="background-color: white;">WHY THE FOREX MARKET GETS TIGHT ?</b></span><br /><div><br /></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-TfnY5hn-3UU/WfQnFqKGyPI/AAAAAAAAXh4/CRwluIJXS-0-QZjW3aVsjGS3ljAXgfmagCLcBGAs/s1600/C%2BL%2BO%2BS%2BI%2BN%2BG%2BB%2BE%2BL%2BL-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="314" data-original-width="479" height="418" src="https://2.bp.blogspot.com/-TfnY5hn-3UU/WfQnFqKGyPI/AAAAAAAAXh4/CRwluIJXS-0-QZjW3aVsjGS3ljAXgfmagCLcBGAs/s640/C%2BL%2BO%2BS%2BI%2BN%2BG%2BB%2BE%2BL%2BL-min.jpg" width="640" /></a></div><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">When we talk about a "tight Forex market" we are usually referring to a lack of trading on a particular currency pair, and therefore a very small amount of price movement over a given period.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">For example, if we said that the USD/JPY was trading "tightly", it would imply that the daily range of the currency pair was extremely small - perhaps a matter of 30 to 50 pips.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">There are other times when we would say that the market is tight also. In some cases, we might refer to the entire market as being "tight". This usually happens on a select few occasions at about the same time each year - with one of these periods of course being: summer.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="background-color: yellow; color: blue; font-size: large;">Summer Trading is Tight Trading</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Even though the Forex market is still open each week day during summer, because many finance companies and banks choose to send their employees on holiday during these times - the liquidity of the entire market is often low. In other words, it's not just one single currency pair which is affected, but all the currency pairs.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">If you are trading during summer or if the American summer happens to be your winter - you need to adjust your trading strategy to incorporate this decrease in liquidity. Perhaps consider more position trades, rather than swing or scalp trades, to attempt to mitigate the additional risk of the low liquidity during the major holiday breaks.</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="background-color: white; color: purple; font-size: large;">KNOW WHEN TO TAKE A BREAK</span></b></blockquote><b><span style="font-size: large;">Finally, the last mistake I see traders make on a regular basis is refusing to take a break when their trading is really suffering. I think this applies to discretionary traders more often than system traders. If you are a system trader, you probably understand your trading system’s average drawdown and might not feel personally attached to each trading decision.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Discretionary traders, on the other hand, often select trades without the aid of system-based rules and might feel personally invested in each trading decision they make, whether they should or not.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Regardless of your trading style, every trader will go through a period of time when his trading really suffers. Losing multiple trades in a row is a tough blow to overcome and can shake the confidence of many traders. Sometimes all that is needed is a short break from trading to clear your&nbsp;</span></b><b><span style="font-size: large;">mind; take a walk and come back in a better mood. Trading when you are angry can lead to taking trades simply because you want to get back at the market.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">You might feel cheated, and you might be looking for revenge. This is a bad mental state to be in when you are planning a trade, because&nbsp;</span></b><b><span style="font-size: large;">the market doesn’t care about you or whether you win or lose. Trading when you are stressed, angry, or looking for revenge against the market will only cloud your judgment and lead to more bad decisions. I’ve even seen traders become so angry with losing money that they mentally give up and open positions for no reason other than gambling and continue to trade until their account is margin called.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Include some guidelines in the risk management section of your trading plan to remind yourself to take a break from trading when things are not going well. Perhaps it is a limit of 10 losing trades in a row; perhaps it is a certain percentage loss of your capital. Some managed funds use a rule stating that if the client account loses more than 20 percent, trading must halt and the client must be consulted before trading continues; 20 percent seems like a decent number to me. Know when to take a break, and never try to trade when you feel like the market owes you a win. It doesn’t.</span></b><br /><br /><b><span style="background-color: yellow; color: red; font-size: large;">C L O S I N G B E L L</span></b><br /><br /><b><span style="font-size: large;">Managing risk through stop placement and position sizing is a critical skill every trader should master. If you are unable to consistently manage risk, you will not last long as a trader. Successful traders know that when risk is managed appropriately, profits will appear over the long run; no single losing trade matters to them. This chapter walked you through the components of risk management techniques and pointed out common mistakes traders make managing risk.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="color: blue; font-size: large;">The following list summarizes the key points from this post:</span></b><br /><ul style="text-align: left;"><li><b><span style="font-size: large;"><b><span style="font-size: large;">Always use a stop loss.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">Avoid overtrading.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">Think of risk in terms of percent loss, not pips.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">Control risk through position sizing.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">Keep risk consistent for every trade.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">Do not trail stops too closely.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">Focus on trades with a good risk-to-reward ratio.</span></b></span></b></li><li><b><span style="font-size: large;"><b><span style="font-size: large;">Know when to take a break.</span></b></span></b></li></ul><br /><b><span style="font-size: large;">The final point to remember is that risk management is no good unless you are able to select good trades. Plenty of traders have blown out their accounts by practicing good risk management but selecting horrible trades. If you can’t consistently pick a good trade, risking 10 percent or 0.01 percent of your account won’t matter; ultimately you will blow out your account.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Before you put&nbsp;</span></b><b><span style="font-size: large;">your faith in risk-to-reward ratios and limited risk with live money, ensure that you have developed a consistent and profitable track record using a demo account. Finally, when things get ugly and you have taken a few losses, know when to take a break. The worst thing a trader can do is try to take revenge on the market after a series of losing trades.</span></b><br /><div><br /><b><span style="background-color: white; color: blue; font-size: large;">SWING TRADING - Concepts to Understand to deal in tight situations...</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Before you get into swing trading, or any type of FOREX trading for that matter, there are some key terms you need to understand to take your level of knowledge to the next level. The first terms you need to understand are <span style="background-color: yellow; color: blue;"><a href="http://www.forextradingarena.com/2013/11/easy-way-to-determine-forex-trend_8.html">uptrend and downtrend</a></span>, which signify that the value of a currency is showing provable signs of either increasing or decreasing in value respectively.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">You also need to form a basic understanding of support and resistance lines. Support lines are like the foundation of the trend’s chart where prices never seem to get lower than. This will be used to help you determine how cheaply you can buy in. Resistance lines are like the ceiling, and they essentially dictate the highest the price trend is going. This will give you an idea of when you might want to consider selling your currency before prices begin to fall back towards the support line.</span></b><br /><b><span style="font-size: large;"><br /></span></b><blockquote class="tr_bq"><b><span style="background-color: white; color: red; font-size: large;">Swing Trading Advantages</span></b></blockquote><b><span style="font-size: large;">While swing trading is something that is not ideal for everyone, such as those who are fortunate and experienced enough to be day traders earning a full-time income, it does have some advantages. First of all, you do not have to sit at home on your computer all day waiting to determine what your next move will be. Not only is this something that is best left to professional investors, but it is also extremely tedious work trying to make a hypothesis regarding what the value of a currency will increase or decrease to within the given 24-hour timeframe.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">On the contrary, some investors participate in what is commonly referred to as trend trading, which can go on for a month or longer where they hold on to the same currency and hope that it follows the expected trend. With swing trading, on the other hand, you are talking about trading in a format that most closely resembles that of trend trading, but you typically only invest in the same currency for less than two weeks.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">This is considered to be a great option for beginners learning the FOREX investing practices because it is enough time to get a preview of how trends work without having to stress out for a month about how your investments are performing.</span></b><br /><blockquote class="tr_bq"><b><span style="background-color: white; color: blue; font-size: large;">How to Swing Trade</span></b></blockquote><b><span style="font-size: large;">Swing trading, as previously mentioned, is a close relative to trend trading in that you are sticking with a current investment for a period of time that is longer than 24 hours. Essentially, you will pick a currency to buy and sell, and you will stick with it for a time frame ranging anywhere from a couple of days until two weeks.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Of course, just as you would with trend trading, you will still want to look at trend charts, so you can get an idea of how your investment will likely perform based on its current price. You can determine this by looking at the support and resistance on the charts as previously discussed.</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">In the FOREX market, there are several ways to trade, but day trading, trend trading and swing trading are three of the more common options. You will find that many professionals like the day trading option because of the amount of money they have to invest and the very minimal amount of risk, but they also receive a lower return with a higher volume.&nbsp;</span></b><br /><b><span style="font-size: large;"><br /></span></b><b><span style="font-size: large;">Most experts suggest that beginners, and investors with just a modest amount of experience, should consider swing trading because it offers an experience similar to trend trading, but it's&nbsp;shorter term involves less risk.</span></b></div><div><div style="text-align: center;"><br /></div></div><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0tag:blogger.com,1999:blog-1998653962850629202.post-36517967143188254652013-11-01T07:00:00.000-07:002019-09-08T10:21:52.635-07:00Achieving consistency: simple steps every trader can take surprisingly !<div dir="ltr" style="text-align: left;" trbidi="on"><br /><div dir="ltr" style="text-align: left;" trbidi="on"><div dir="ltr" style="text-align: left;" trbidi="on"><span style="color: red; font-size: large;"><b style="background-color: white;">Achieving consistent results is the largest challenge any trader faces on the road to becoming professional grade. Consistency in this context is not measured by profits, because even when a trader does everything according to plan, he might still lose money.&nbsp;</b></span><br /><span style="background-color: white; font-size: large;"><span style="color: red; font-size: large;"><b><br /></b></span><span style="color: red; font-size: large;"><b>Consistency is measured by how traders conduct their business, control their emotions, and manage their accounts. Is your trading organized and efficiently executed, or do you change strategies every week, hoping you have found a better mouse trap? Having nearly finished this book, you now understand how I trade the currency market, but whether you’ll be able to do anything with this knowledge is up to you.</b></span></span><br /><span style="font-size: large;"><b><br /></b></span><div class="separator" style="clear: both; text-align: center;"><a href="http://3.bp.blogspot.com/-kmt9zsGyfMM/UnOtHz4fnoI/AAAAAAAAAb4/K2RnnRwcx-E/s1600/Achieving+Consistency.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-size: large;"><b></b></span></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-Nx52HCGqYx8/WfQqN9b6KwI/AAAAAAAAXiM/iej8JTvOSD8ZQKYcrgI2q4nvfXE2-SexgCLcBGAs/s1600/Achieving%2BConsistency-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="359" data-original-width="479" height="478" src="https://4.bp.blogspot.com/-Nx52HCGqYx8/WfQqN9b6KwI/AAAAAAAAXiM/iej8JTvOSD8ZQKYcrgI2q4nvfXE2-SexgCLcBGAs/s640/Achieving%2BConsistency-min.jpg" width="640" /></a></div><br /><span style="font-size: large;"><b>Even if I published the Holy Grail of trading strategies in every major newspaper across the United States, there would be plenty of traders who would still go broke. Every trader goes through a personal journey to achieve consistency; this journey has less to do with skill and everything to with the trader’s personality and state of mind.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>In this chapter you will read about several common problems I see among traders who e-mail me for help. You will learn how to organize your trading by writing a trading plan and keeping a trade journal. I’ll share some advice that has worked well in my own trading, and finally, you will learn how to demo trade correctly.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: blue; font-size: large;"><b style="background-color: white;">STOP SEARCHING FOR THE HOLY GRAIL</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Traders waste a tremendous amount of time searching for the one system that will turn them into a confident and successful trader. The pursuit for the Holy Grail of trading is not only futile, it damages a trader’s confidence in her ability to trade her own style. When you are constantly searching for a better, easier trading system, you are not spending time with the live market and you’ll eventually lose confidence in your own ability to select a good trade.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>The less time you spend on Internet forums, chat rooms, or getting trading tips off Twitter, the better. Stop looking for the Holy Grail; it doesn’t exist, and no number of indicators, gurus, or web sites is going to make you a better trader. You have everything you need in this book, and now it is time to do it on your own. If you spend another week searching for another trading system, you’re using it as an excuse to avoid doing what you already know works. It’s like buying yet another diet book to lose weight when you already know you should eat less and exercise.</b></span><br /><br /><span style="font-size: large;"><b>These traders are not alone. I struggled with trading strategies for several years. I finally had to accept that trading was a game of probabilities, and no matter how hard I worked, losses were going to happen. The notion that I couldn’t eliminate all the inefficiencies in my trading strategies was very alien to me. I had come to trading from a lengthy career in e-commerce and software engineering, so coding out bugs was a part of my nature.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>I wasted a lot of time trying to perfect various trading systems until I ditched them all and simply focused on support and resistance.You do not need a perfect trading system to make a decent return in the trading business.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="color: purple; font-size: x-large;"><b style="background-color: white;">FIX YOURSELF FIRST</b></span><br /><br /><span style="font-size: large;"><b>Achieving a consistent result has more to do with a lack of discipline in a trader’s life than anything else. Trading is such an individual journey that it has a keen ability to lay bare any emotional or discipline problems a trader has in his personal life. I believe that learning to trade is closer to learning how to lose weight or play an instrument.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Each is well documented, and anyone can learn to lose weight or play an instrument, but the ability to do so lies in the individual’s resolve to commit to the process. There are no quick and easy roads to losing weight or playing a bass guitar, and there are no quick and easy roads to becoming a successful trader. Is it any wonder, then, why weight loss ads and currency trading infomercials offer quick rewards with little effort?</b></span><br /><br /><span style="font-size: large;"><b>Fixing yourself first is a critical first step to achieving a consistent result as a trader. The topics in this section may be uncomfortable for some of you to read because you’ll realize you are in this situation, but do not worry; you can overcome these issues and become a great trader. Finally, don’t skip this section because you think you have it all figured out. You might identify trouble spots you didn’t even realize you had, and your results could show it.</b></span><br /><br /><span style="color: purple; font-size: x-large;"><b style="background-color: white;">BE FINANCIALLY STABLE</b></span><br /><div><br /></div><span style="font-size: large;"><b>Regardless of how well you protect your account the money in your trading account is called risk capital for a reason. Trading currency off exchange, on margin, is probably the riskiest trading environment in which a trader can participate. Traders can and have lost their entire accounts through stupid trades, poor risk management, or both.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>It should be obvious to point out that a trader should be financially stable before he begins trading, but I continue to meet traders who are literally down to their last $500 and are trying to trade their way out of a jam. This kind of desperate trading is typically not sustainable, and many of them I meet ultimately fail under the pressure. I suspect a number of traders in this situation are drawn to trading in part due to the low barrier of entry offered by micro accounts and the constant marketing of get-rich-quick trading schemes.</b></span><br /><br /><span style="font-size: large;"><b>Trading is not a road to easy wealth, and you shouldn’t be trading if you are struggling to keep the lights on or food in your house. I’m not suggesting you can’t trade if you only have $1,000, but trading is a serious business that requires financial stability going into the venture. If you lose that $1,000, it shouldn’t bankrupt you.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Stress can lead to poor decision making, and there is already enough pressure to achieve consistency without worrying about having to pay your bills with the next trade. If you are not where you need to be financially, I suggest you seriously demo trade until you are on better financial ground. You’ll be much better prepared to trade with live money after a few months of practice and much calmer about taking trades, knowing that your risk capital doesn’t represent what’s left of your life savings.</b></span><br /><br /><span style="color: purple; font-size: large;"><b style="background-color: white;">PERSONALITY TRAITS AND TRADING</b></span><br /><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://3.bp.blogspot.com/-aSKUPC4zRoI/WfQqO8GBncI/AAAAAAAAXiY/KjXQBhKOINAIOjVIVDs5Q0BNUoLyWMnZACEwYBhgL/s1600/Personality%2BTraits%2Band%2BTrading-min.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="359" data-original-width="507" height="452" src="https://3.bp.blogspot.com/-aSKUPC4zRoI/WfQqO8GBncI/AAAAAAAAXiY/KjXQBhKOINAIOjVIVDs5Q0BNUoLyWMnZACEwYBhgL/s640/Personality%2BTraits%2Band%2BTrading-min.jpg" width="640" /></a></div><div><br /></div><span style="font-size: large;"><b>I’ve found trading to be the most rewarding, exciting, personally demanding, and emotionally draining profession I’ve ever pursued. When I came to trading I had already established myself as a leader in the highly technical field of e-commerce and information technology management. What I did for a living was hard, complex, and demanding, so I figured trading would be a breeze to master.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>I was wrong. What many traders do not realize about trading is how demanding it will be on their personal emotions. I liken learning to trade to learning to lose weight. Just like a dieter, each trader has a unique set of emotions, personal barriers, fears, and insecurities he must identify and move beyond in order to achieve success. Just like losing weight, trading is a personal journey, and each trader will achieve success only when he is ready to cut loose his personal anchors.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>You should be prepared for a journey in personal development when you begin to trade.</b></span><br /><br /><span style="color: red; font-size: large;"><b>ANALYTICAL THINKERS&nbsp;</b></span><br /><br /><span style="font-size: large;"><b>If you are an analytical thinker, someone who likes structure, logic, and predictable outcomes, you may have a personality that will become easily frustrated with trading. I’m an analytical thinker; I was a programmer for years and have flown airplanes since I was 13. I’ve always believed that with hard work and logical thinking any problem could be solved, which is not the case in trading.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>I found myself trying to optimize every trading system I developed to the point where I determined the trading system to be flawed and proceeded to look for a better one. I grew increasingly frustrated that I couldn’t apply logic and remove all the faults from each trading system. It actually hindered my trading for a long time because I spent more time trying to build a system rather than actually trading.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>I finally had to accept the fact that trading is an abstract world, void of clean, logical assumptions and to simply start trading with an imperfect system. For a binary guy like me, that was very hard to do. The market is an abstract beast, and you can’t develop the perfect system. If you’re an analytical personality type, be aware of the desire to over optimize a system because it might an issue for you.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>You should be ready to accept that the market isn’t perfect and no trading system will be, either. You can’t optimize every loss out of a trading system, and that is okay. Just start trading!</b></span><br /><br /><span style="font-size: large;"><b>Workaholics and “Type-A” Personalities Most people in this world are content with coming to work and doing their 40 hours a week in exchange for a stable paycheck. These are not the kind of people I meet who are interested in trading. People who are driven, who want to better their lives and achieve true financial and personal freedom, are the types I see every day through my blog and online webinars.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Most of these people are already successful corporate warriors and now they are looking to ditch a day job they hate, and supplement their investments. Others are approaching retirement and realize they need to do something to maintain their current lifestyle into retirement.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>These people are driven, success oriented, and willing to put in the effort necessary to become successful traders. The problem is, trading doesn’t necessarily reward constant effort, and that can be a problem for driven folks.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Workaholics and “Type-A” personalities need to have something to do every day or else they do not feel they are doing enough to reach their goals. Perhaps this is why such people are attracted to day trading. Unfortunately, just because you want to trade today doesn’t mean the market is offering any opportunities.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>The currency market will move when it is ready, and people who can’t contain their desire to trade in order to “be a trader” will place their capital needlessly at risk. Driven personality types are at risk of developing a habit known as over trading. Over trading occurs whenever a trader takes a trade simply because she is bored or feels the need to be trading to justify her existence as a trader.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>Listen, the market doesn’t care if you spend one hour or 10 hours a day looking at charts. I’ve met traders who spend 12 hours a day trading and still haven’t made a profit. You must learn to let go, allow the market do the work for you, and trade only when it is necessary. You can’t force success just by putting in more hours watching the charts. Think about the old saying, “A watched pot never boils,” and learn to relax a bit.</b></span><br /><br /><span style="color: #45818e; font-size: x-large;"><b style="background-color: yellow;">DISCIPLINE</b></span><br /><div><br /></div><span style="font-size: large;"><b>The science behind losing weight isn’t hard to understand; it’s simply a matter of reducing your calorie intake, eating the right foods, and exercising. There is no magic pill or secret exercise routine needed to lose weight, yet billions of dollars are spent on coaches, diets, and exercise programs because people simply are not disciplined enough to do it on their own.&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>If struggling traders were trying to lose weight, the outcome would be very similar. There is no secret formula to achieve success at trading. It takes good money management and the discipline to do the &nbsp;same thing every day. Is it any surprise that diet pills and currency trading systems are advertised the same way?&nbsp;</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b>People respond to promises that a pill or a black-box trading system will fix all their problems. If you have problems with discipline in your life, this will probably be the largest struggle ahead of you on the road to becoming a successful trader. Discipline issues are subtle, and even people who seem to have it together could be a mess under closer examination.</b></span><br /><span style="font-size: large;"><b><br /></b></span><span style="font-size: large;"><b></b></span><span style="color: red; font-size: x-large;"><b style="background-color: yellow;">QUIT MAKING EXCUSES</b></span><br /><div><br /></div><ul style="text-align: left;"><li><span style="font-size: large;"><b><b><span style="font-size: large;">1.“My Trading System Doesn’t Work”</span></b></b></span></li><li><span style="font-size: large;"><b><b><span style="font-size: large;">2.“I’m Asleep When the Market Moves”</span></b></b></span></li><li><span style="font-size: large;"><b><b><span style="font-size: large;">3.“I Can’t Afford Big Stop Losses”</span></b></b></span></li><li><span style="font-size: large;"><b><b><span style="font-size: large;">4.“My Stop Orders Are Gunned”</span></b></b></span></li><li><span style="font-size: large;"><b><b><span style="font-size: large;">5.“I Can’t Trade Because . . .bla... bla... bla..."</span></b></b></span></li><li><span style="font-size: large;"><b><b><span style="font-size: large;">6."My broker is cheater..."</span></b></b></span></li></ul><div id="shadow"><div id="backs"><form action="https://feedburner.google.com/fb/a/mailverify" method="post" onsubmit="window.open('https://feedburner.google.com/fb/a/mailverify?uri=Fxarena', 'popupwindow', 'scrollbars=yes,width=550,height=520');return true" style="border: 1px solid #ccc; padding: 3px; text-align: center;" target="popupwindow"><b>GET FRESH CONTENT DELIVERED BY&nbsp;<span style="background-color: yellow;">E-MAIL</span></b><br /><input name="email" style="width: 140px;" type="text" /><br /><input name="uri" type="hidden" value="Fxarena" /><input name="loc" type="hidden" value="en_US" /><input type="submit" value="Subscribe" /><br /><b><span style="color: #274e13;">Whatsapp</span>&nbsp;<span style="font-family: &quot;; font-size: medium;">: +91 9619011227</span></b></form></div></div></div></div></div>Kuldeep Nikamhttp://www.blogger.com/profile/02659307186417243533noreply@blogger.com0